FTC Publishes Direction On New Safeguards Regulations – Financial Providers
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On Could 24, 2022, the Federal Trade Fee (FTC) released a new publication aimed at giving economical
institutions and their company companies guidance on the FTC’s
not long ago revised Safeguards Rule less than the Gramm-Leach-Bliley Act
(GLBA). The new publication, “FTC Safeguards Rule: What Your
Organization Requirements to Know,” indicators the FTC’s continued
fascination in regulating the facts safety posture of money
establishments issue to the GLBA. Companies subject to the
FTC’s jurisdiction for the GLBA should really fork out specific consideration
to these standards, as the agency may possibly be looking to flex its
regulatory authority now that it is absolutely staffed.
The purpose of the Safeguards Rule is to guarantee that monetary
establishments and their service providers maintain safeguards to
protect the security of purchaser info. The FTC’s
Safeguards Rule broadly defines “financial institutions”
and features in just its definition non-banking economical
establishments, these kinds of as test-cashing organizations, payday creditors,
mortgage loan brokers, nonbank loan providers, own residence or real estate
appraisers, professional tax preparers, courier services, and
credit reporting businesses.
The FTC amended the rule in December 2021 to give far more
concrete steerage for monetary expert services firms and their
third-party assistance vendors, as we wrote about previously here. Compared with prior principles and steering
promulgated by federal economic regulators, the FTC’s new
Safeguards Rule contains particular standards for what safeguards
economical establishments need to put into action as aspect of their information and facts
security method. For illustration, the new Safeguards Rule necessitates
money establishments to implement multifactor authentication for
individuals accessing networks that contain shopper
information.
The FTC’s FTC Safeguards Rule: What Your Business enterprise Desires to
Know publication offers an overview of the new Safeguards Rule
and is supposed to apprise monetary institutions regulated by the
FTC of the core data protection concepts that ought to be followed. For
instance, the publication notes that a sensible info
protection software should include things like 9 features: (1) a capable
personal accountable for the stability software (2) periodic threat
assessments (3) safeguards to control the threats discovered by way of
threat assessments (4) checking and tests performance of
safeguards on a typical basis (5) teach staff members frequently on
cybersecurity consciousness (6) support supplier oversight (7)
holding information safety method present-day to safeguard from
rising threats (8) producing a prepared incident reaction system
and (9) once-a-year experiences to boards of governors on security
program.
Fiscal institutions and their services providers should really review
the FTC’s publication for far more aspects.
The material of this short article is supposed to deliver a typical
tutorial to the matter subject. Specialist assistance must be sought
about your distinct circumstances.
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