The Division of Examinations at the Securities and Exchange Commission (SEC) issued a risk alert detailing recent issues observed by inspectors regarding compliance with the agency’s identity theft red flags rule.
The risk alert, issued Monday, aims to help registered broker-dealers, investment firms, and certain investment advisers enact effective policies and procedures to comply with Regulation S-ID, which was implemented in 2013 by the SEC and Commodity Futures Trading Commission as part of the Dodd-Frank Act. The rule requires registered entities to develop and implement an identity theft prevention program for covered accounts that includes how a firm finds possible identity theft attempts and handles them.
