Guidance is needed for financial institutions regarding service provider responsibilities.
01/06/2023 1:30 P.M.
2 minute read
ACA International and joint industry trade groups are seeking detailed compliance guidance from the Federal Trade Commission on aspects of the Safeguards Rule.
Last month, ACA, the American Financial Services Association, the Consumer Data Industry Association and the National Automobile Dealers Association (NADA) submitted a letter (PDF) to the FTC thanking it for delaying the effective date of the rule and to request that the FTC provide more specific guidance to certain financial institutions regarding their service provider responsibilities.
“With regard to service provider responsibilities, we request that the FTC work with NADA as soon as possible to provide detailed compliance guidance on the scope and application to the automobile industry of both the final rule’s customer information and service provider definitions, and the FTC’s compliance expectations of automobile dealers with regard to each of the three elements of the requirement to oversee service providers,” the letter states.
After advocacy by ACA and support of other groups’ comments, the FTC extended the deadline for companies to comply with some of the changes in the Safeguards Rule by six months to June 9, 2023, ACA previously reported.
The FTC approved changes to the Safeguards Rule in October 2021 and many provisions went into effect 30 days after publication of the rule in the Federal Register. Other sections of the rule were set to go into effect on Dec. 9, 2022, which ACA has been preparing for through compliance and education resources on its online Safeguards Rule Resource Center.
A recent episode of the ACA Huddle with Kim Phan, partner at Troutman Pepper, and Leslie Bender, senior attorney at Eversheds Sutherland (US) LLP, reviewed the activities leaders should complete to ensure their organizations are compliant by the upcoming deadline. They also answer questions about Safeguards Rule compliance.
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