Proposed Amendments to Reg S-P Permits Limited Transfer of Information When IARs Change Firms

March 05, 2008

At its open meeting today, the U.S. Securities and Exchange Commission (“SEC”) voted to propose several amendments to Regulation S-P, which sets forth the privacy obligations of registered investment advisers and broker-dealers with respect to confidential client information.

Of particular interest to those investment adviser representatives and/or registered representatives that are considering the possibility of departing their existing registered investment adviser or broker-dealer and joining a new firm, the proposed amendments to Regulation S-P would apparently permit the transfer of limited information when such personnel change firms. Although the SEC has not issued the text of these proposed amendments, SEC Chairman Christopher Cox explained during the open meeting that “the proposed amendments would provide guidance on the responsibilities that a firm and its employees have to protect client privacy when employees move from one firm to another.”

Upon the SEC’s publication of the proposing release, RIA Compliance Consultants will provide a detailed summary of the proposed amendments to Regulation S-P to the readers of our blog.

Posted by Bryan Hill
Labels: Privacy, SEC