NEW YORK - If mutual fund companies have not already taken action to comply with new privacy regulations, now is the time to do so, according to Gene Gohlke, associate director of the office of compliance and inspections at the Securities and Exchange Commission. Gohlke spoke about the focus of current SEC fund inspections at the National Investment Company Service Association's East Coast regional meeting here earlier this month.
The regulation with which fund companies must comply - Regulation S-P - relating to the privacy of consumer financial information, was adopted by the SEC in June. (MFMN 7/3/00) The rule became effective in November, however compliance is not mandatory until July 1 of this year. The regulations implement the requirements of the Gramm-Leach-Bliley Act, enacted in November 1999. That act required the SEC and other federal agencies to adopt rules implementing restrictions and notice requirements on financial institutions in disclosing consumers' nonpublic personal information, according to the SEC's final rule.