Joseph Lazzarotti of JacksonLewis writes:
Following recent examinations of SEC-registered investment advisers and broker-dealers, the Securities and Exchange Commission’s (SEC) Office of Compliance Inspections and Examinations (OCIE) published a privacy risk alert on April 16, 2019. OCIE is hoping to remind advisers and broker-dealers about providing compliant privacy and opt-out notices, and adopting and implementing effective policies and procedures for safeguarding customer records and information, under Regulation S-P.
Privacy Notices. During the examinations, OCIE observed advisors and broker-dealers were not providing initial privacy notices, annual privacy notices and opt-out notices to their customers. When these notices were provided, many did not accurately reflect firms’ policies and procedures and/or notify customers of their right to opt out of having their nonpublic personal information shared with nonaffiliated third parties.
Read more on The National Law Review.