The U.S. Securities and Exchange Commission has adopted new rules that require stock brokerages, mutual funds and investment advisers to establish programs to help detect identity theft.
The rule on identity theft, which stemmed from a requirement in the 2010 Dodd-Frank Wall Street reform law, marks the first official action of SEC chairman Mary Jo White.
Previously delegated to the Federal Trade Commission under the Fair Credit Reporting Act, under the new law, the authority to establish identity theft rules is now given to the SEC and the Commodity Futures Trading Commission for regulation and enforcement.
The SEC and CFTC jointly proposed the rules in February 2012 requiring firms to create programs to set up red flags to spot potential identity theft and respond to such cases.
According to Commissioner Luis Aguilar, while many financial firms already have programs in place, under the final rule, some investment advisers will be covered for the first time.
Join the Conversation