Clifford Chance

Update: Recent Amendments to Regulation S-P

July 11, 2024

On May 16, 2024, the Securities and Exchange Commission issued important amendments to Regulation S-P, a set of privacy rules that regulate covered institutions' treatment of non-public personal information about consumers. A "covered institution" is a broker, dealer, investment company, SEC-registered investment adviser, funding portal, or transfer agent registered with the SEC or another appropriate regulatory agency, as defined in the Securities Exchange Act of 1934 ("transfer agent").  The Amendments are designed to modernize and enhance Regulation S-P protections, initially put in place 24 years ago, and respond to expanded use of technology and corresponding risks to consumers.   

Broadly, the Amendments update the requirements of (1) the "safeguards" rule, which requires brokers, dealers, investment companies, and SEC-registered investment advisers to adopt written policies and procedures addressing administrative, technical, and physical safeguards to protect customer records and information; and (2) the "disposal" rule, which requires institutions covered by the safeguards rule and transfer agents to appropriately dispose of consumer report information.

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