The proposed safeguards rule from the Federal Trade Commission (FTC) was published in the Federal Register this morning.
“While AFSA supports the goal of the Safeguards Rule to promote data security, we believe that that the prescriptive standards outlined in the proposal would not be appropriate for all market participants,” said AFSA Vice President of Legal & Regulatory Affairs. “We agree with Commissioners Noah Phillips and Christine Wilson, who issued a dissenting statement. As their dissenting statement said, the proposal is based on the rules passed two years ago by the New York Department of Financial Services. We don’t yet have data on the full impact of those regulations. Writing national rules on that state rule, before we see the true impact of the rule, seems premature. We support a Safeguards Rule that has a flexible approach and can be tailored to a company’s size and complexity.”
Comments are due to the FTC by June 3, 2019. AFSA plans to comment.