SEC Adopts Rule Requiring Proper Disposal of Consumer Information

Washington, DC, December 9, 2004 - The SEC has adopted revisions to Regulation S-P that are intended to prevent the unauthorized disclosure of sensitive consumer information and reduce the risk of fraud or related crimes, including identity theft, by ensuring that such information is disposed of properly.

Background
In September 2004, the SEC proposed revisions to Regulation S-P that were mandated by the recent enactment of the Fair and Accurate Credit Transactions Act (FACTA). Effective July 1, 2005, all SEC-listed companies are required to:

have written policies and procedures that provide for the protection of customer records and information; and
adopt policies and procedures to safeguard the disposal of certain consumer information.

ICI Position
In an October comment letter, the Institute expressed support for the proposal, noting that it would enhance consumer privacy. ICI urged the SEC to ensure that the rule accounts for all forms of information, including electronic records.

Related Links
A section of this website is devoted to privacy issues.