ARLINGTON, VA. -- Compliance experts are recommending that firms take a flexible, risk-based approach as they respond to the SEC's red flag rules, a new set of regulations for protecting clients against identity theft

Enacted last year, the red flags rules require entities that qualify as covered financial institutions or creditors maintaining covered accounts to implement an identity theft program. In its guidance, the SEC noted that "most registered brokers, dealers and investment companies, and some registered investment advisors" are likely to meet the threshold triggering the requirement to set up an identity theft program.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access