Who is subject to Regulation SP?

[1] Reg S-P applies to all broker-dealers, investment advisers, and investment companies operating within U.S. securities markets, regardless of whether they have satisfied their registration obligation.

What is SEC Regulation SP?

Under the SEC’s Regulation S-P, firms are required to have policies and procedures addressing the protection of customer information and records. The rule also requires firms to provide initial and annual privacy notices to customers describing information sharing policies and informing customers of their rights.

Who is covered by Gramm Leach Bliley?

The Gramm-Leach-Bliley Act requires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their customers and to safeguard sensitive data.

Are brokers regulated by the SEC?

Under Section 15 of the Securities Exchange Act of 1934, most “brokers” and “dealers” must register with the SEC and join a “self-regulatory organization,” or SRO. Individuals who buy and sell securities for themselves generally are considered traders and not dealers.

What is the GLBA Privacy Rule?

The Gramm-Leach-Bliley Act (GLB Act or GLBA) is also known as the Financial Modernization Act of 1999. It is a United States federal law that requires financial institutions to explain how they share and protect their customers’ private information.

What is Reg Sci?

Regulation Systems Compliance and Integrity (Regulation SCI) is a set of rules created by the United States Securities and Exchange Commission to monitor the security and capabilities of U.S. securities markets’ technological infrastructure.

Who is regulated by SEC?

Entities under the SEC’s authority include securities exchanges with physical trading floors such as the New York Stock Exchange, self-regulatory organizations, the Municipal Securities Rulemaking Board, NASDAQ, alternative trading systems, and any other persons engaged in transactions for the accounts of others.

What are the requirements for Regulation S-P?

Regulation S-P includes requirements for investment advisers registered with the Commission (“registered advisers”), brokers, dealers (collectively, “broker-dealers”), and investment companies (“funds”) to adopt appropriate policies and procedures that address safeguards to protect this information. 3

Who is not a consumer under Regulation S-P?

A: No. Regulation S-P requires an investment adviser to provide certain privacy notices to its customers and consumers. 13 Under the regulation, a “consumer” or a “customer” must be an individual. 14 Therefore a client that is not an individual, such as a pension plan, is neither a consumer nor a customer of the adviser. 15

Who is a customer of a fund under Regulation S-P?

Q: Is an individual who purchases investment company (“fund”) shares through a broker-dealer a customer of the fund under Regulation S-P even if the fund has no direct contact with the individual? 16 A: Yes, if the individual owns the fund shares in his or her own name.

What are the Securities and Exchange Commission privacy rules?

SUMMARY: The Securities and Exchange Commission is adopting Regulation S-P, privacy rules promulgated under section 504 of the Gramm-Leach-Bliley Act.