Identity Theft Red Flags Rules
In April 2013, the U.S. Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) jointly approved a final rule requiring broker-dealers, mutual funds, federally registered investment advisers, and certain other regulated entities to adopt programs designed to detect and address identity theft.
Even though many regulated entities have already been subject to similar rules enacted by other agencies, the requirements of Regulation S-ID will be brand new for investment advisers registered under the Investment Adviser Act, particularly private fund and hedge fund advisers that are recent registrants with the SEC. All SEC-regulated entities that fall within the rules’ scope must comply with the rules by November 20, 2013.
Instructors will provide:
- Examples of activities that are likely to qualify an SEC‑regulated entity as being subject to new Regulation S-ID
- Key considerations for developing an identity theft program that is appropriate to the size and complexity of your firm and the nature and scope of its business
- Essential steps for performing a business and compliance system analysis, prior to creating or enhancing written procedures
- Requirements for the administration of an identity theft program, including staff training and oversight of service providers
- The rules’ guidelines and examples of red flags to help firms administer their programs
- Best practice guidance with specific reference to the rules’ guidelines
After attending this course, attendees should be able to:
- Determine whether the firm is covered under Regulation S-ID
- Perform a risk analysis to ensure that the identity theft program is appropriate to the size and complexity of the firm and the nature and scope of its activities
- Develop an identity theft program that meets the requirements of the new rules: Identifies relevant types of identity theft red flags, detects the occurrence of those red flags, and responds appropriately to detected red flags
- Administer, review and update the identify theft program as required under Regulation S-ID
- Provide adequate staff training relating the identity theft program
For Whom: Designed to increase the professional competency of broker-dealers, mutual funds, federally registered investment advisers, and certain other regulated entities with legal, compliance, technology and management responsibilities
Suggested Skill Level: Intermediate
Instructional Method: Group Internet-Based
Prerequisites for Participation: No prerequisites are required. However, attendees can benefit by reviewing Regulation S-ID to become familiar with its structure and defined terms.
Advance Preparation: None
Continuing Education Credits:
NRS Continuing Education Guide
Recommended CPE Credit: 2 in the Regulatory Ethics field of study