Dodd-Frank Puts ID Theft Regs on Stock Brokers

The Securities and Exchange Commission may soon require broker-dealers, mutual funds, and other SEC-regulated entities to provide written documentation for their protections against identity theft.

The key terms of the SEC’s requirements will compel brokers to have plans for identifying, detecting, and responding to identity theft. The rule will also require that brokers lay out explicit terms for updating their identity theft plans, according to finextra.

The SEC’s proposal will soon hit the Federal Register, beginning a 60-day public comment period.