SEC: Financial Orgs Have 30 Days To Send Data Breach Notifications
An anonymous reader quotes a report from BleepingComputer: The Securities and Exchange Commission (SEC) has adopted amendments to Regulation S-P that require certain financial institutions to disclose data breach incidents to impacted individuals within 30 days of discovery. Regulation S-P was introduced in 2000 and controls how some financial entities must treat nonpublic personal information belonging to consumers. These rules include developing and implementing data protection policies, confidentiality and security assurances, and protecting against anticipated threats. The new amendments (PDF) adopted earlier this week impact financial firms, such as broker-dealers (funding portals included), investment firms, registered investment advisers, and transfer agents. The modifications were initially proposed in March of last year to modernize and improve the protection of individual financial information from data breaches and exposure to non-affiliated parties. Below is a summary of the introduced changes: - Notify affected individuals within 30 days if their sensitive information is, or is likely to be, accessed or used without authorization, detailing the incident, breached data, and protective measures taken. Exemption applies if the information isn't expected to cause substantial harm or inconvenience to the exposed individuals.- Develop, implement, and maintain written policies and procedures for an incident response program to detect, respond to, and recover from unauthorized access or use of customer information. This should include procedures to assess and contain security incidents, enforce policies, and oversee service providers.- Expand safeguards and disposal rules to cover all nonpublic personal information, including that received from other financial institutions.- Require documentation of compliance with safeguards and disposal rules, excluding funding portals.- Align annual privacy notice delivery with the FAST Act, exempting certain conditions.- Extend safeguards and disposal rules to transfer agents registered with the SEC or other regulatory agencies.
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