Market regulation · 20/09/2004

Disposal of Consumer Report Information

The Securities and Exchange Commission ("Commission") is publishing for comment amendments to the rule under Regulation S-P requiring financial institutions to adopt policies and procedures to safeguard customer information ("safeguard rule"). The proposed amendments would implement the provision in section 216 of the Fair and Accurate Credit Transactions Act of 2003 requiring proper disposal of consumer report information and records. Section 216 directs the Commission and other federal agencies to adopt regulations requiring that any person who maintains or possesses a consumer report or consumer information derived from a consumer report for a business purpose must properly dispose of the information. The proposed amendments also would require the policies and procedures adopted under the safeguard rule to be in writing.