Brokerage Consulting Services:Regulation S-P

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Regulation S-P

Most investment advisers, broker dealers, investment companies, and other "financial institutions" with individual customers are required, to provide their customers with a notice of its privacy policies and practices. This requirement applies to all brokers dealers and includes all investment advisers whether or not the adviser is exempt from registration with the Securities and Exchange Commission.

Under the Gramm-Leach-Bliley Act, (SEC Regulation S-P) a broker-dealer or investment adviser (or other "financial institution") must provide its customers with a notice of its privacy policies and practices, and must not disclose nonpublic personal information about a consumer to nonaffiliated third parties unless the institution provides certain information to the consumer and the consumer has not elected to opt out of the disclosure.

Additionally, every investment adviser, broker, dealer and investment company must adopt policies and procedures that address administrative, technical, and physical safeguards for the protection of customer records and information. These policies and procedures must be reasonably designed to:

	Insure the security and confidentiality of customer records and information
	Protect against any anticipated threats or hazards to the security or integrity of customer records and information
	Protect against unauthorized access to or use of customer records or information that could result in substantial harm or inconvenience to any customer

Industry News

According to the "Compliance Reporter" the SEC has issued letters to firms that it feels lack readiness for Regulation S-P. According to the article "Gene Gohlke, associate director in the SEC office of Compliance Inspections and Examinations, said deficiency letters represent the strongest action by the agency because ahead of the compliance date, firms haven't really violated anything. However, action down the road could be influenced by how firms respond to deficiency, he added. "We may not come back after July 1, or we might re-focus," he said." www.compliancereporter.com

Information

Brokerage Consulting Services can provide customized updates to your Written Supervisory Procedures Manual and Customer Disclosure Statements that ensure that you are in compliance with Regulation S-P.

Questions?

As a service to our customers and prospects Brokerage Consulting Services will provide you with "the short answer" to your securities industry related questions. Just click here and and type in your question. We will answer by email or phone. If the question falls outside of our short answer constraints we will also offer other solutions for you to get an answer.