On March 5, 2019 the Federal Trade Commission (“FTC”) published requests for comment on proposed amendments to two key rules under the Gramm-Leach-Bliley Act (“GLBA”). Most significantly, the FTC is proposing to add more detailed requirements to the Safeguards Rule, which governs the information security programs financial institutions must implement to protect customer data.
In addition, the FTC is proposing to expand the definition of “financial institution” under the Safeguards Rule and the Privacy Rule to include “finders.” Finally, the FTC is proposing to amend the Privacy Rule to make technical and conforming changes resulting from legislative amendments to GLBA in the Dodd-Frank Act and FAST Act of 2015.
Proposed Revisions to the Safeguards Rule’s Information Security Program Requirements
The Safeguards Rule establishes requirements for the information security programs of all financial institutions subject to FTC jurisdiction. The Rule, which first went into effect in 2003, requires financial institutions to develop, implement, and maintain a comprehensive information security program. As currently drafted, the Safeguards Rule has few prescriptive requirements, but instead generally directs financial institutions to take reasonable steps to protect customer information.
The FTC’s proposed revisions would add substantially more detail to these requirements. Andrew Smith, Director of the FTC’s Bureau of Consumer Protection, explained that the purpose of the proposed changes is “to better protect consumers and provide more certainty for business.” The new requirements are primarily based on the cybersecurity regulations issued by New York Department of Financial Services (“NYSDFS”), and the insurance data security model law issued by the National Association of Insurance Commissioners.
Continue Reading FTC Proposes to Add Detailed Cybersecurity Requirements to the GLBA Safeguards Rule