| WASHINGTON, April 10
WASHINGTON, April 10 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 on Wednesday.
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 Wednesday morning.
The new rules stem from a requirement in the 2010 Dodd-Frank
Wall Street reform law, and are not considered to be
The law amended the Fair Credit Reporting Act to give the
SEC and the Commodity Futures Trading Commission authority to
establish identity theft rules for the firms they regulate and
to enforce them.
Previously, authority had been delegated to the Federal
The SEC and CFTC first jointly proposed the rules in
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.
The joint rules become final after both the SEC and CFTC
sign off. The CFTC's rules would apply to such firms as futures
brokerages and commodity trading advisers.
"These rules are a common sense response to the growing
threat of identity theft to all Americans," White said.
SEC Commissioner Luis Aguilar, a Democrat, 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.