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American Financial Services Association

SBA Office of Advocacy Says Delay Safeguards Rule

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SBA Office of Advocacy Says Delay Safeguards Rule

Last month, AFSA, along with ACA International, the Consumer Data Industry Association, and the National Automobile Dealers Association, requested that the Federal Trade Commission (FTC) delay the effective date of the Standards for Safeguarding Customer Information rule (Final Rule) until December 2023. Complying with the new rule will require the creation of new processes and extensive vetting of third-party partners, necessitating significant resources and staff that are in high demand due to the pandemic and supply chain issues.

On August 5, the Small Business Administration (SBA) Office of Advocacy submitted a letter to the FTC supporting the joint trades letter. The Office of Advocacy SBA letter emphasized the outsized role the Safeguards rule would have on small financial institutions, making business more difficult in a time that already presents significant roadblocks.

“Safeguarding customer information is extremely important. However, it is also important for the requirements of the rule to be implemented correctly. The December 9, 2022 effective date does not provide enough time for the requirements to be implemented correctly. Accordingly, Advocacy respectfully requests that the FTC extend the effective date of [the] rule to December 9, 2023.”

Read AFSA’s full blog post outlining why its crucial that the Safeguard rule be delayed.

August 8th, 2022 by