According to a recent report from Reuters, stock brokerages, mutual funds and investment advisers will be required to establish programs to help detect identity theft under new rules adopted by U.S. securities regulators.
The vote by the U.S. Securities and Exchange Commission at a public meeting marked the first official action by its new chairman, Mary Jo White, who was sworn in early this month.
The new rules stem from a requirement in the 2010 Dodd-Frank Wall Street reform law, and are not considered to be controversial.
Previously, authority had been delegated to the Federal Trade Commission.
The SEC and CFTC first jointly proposed the rules in February 2012.
They require firms to create programs to set up red flags to spot potential identity theft, respond to cases of ID theft and periodically update their programs.
“These rules are a common sense response to the growing threat of identity theft to all Americans,” White said.
Many financial firms already have programs in place. However, under the final rule, some investment advisers, such as those who advise hedge funds, will be covered for the first time.
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