,
Jackson B.R. Galloway and
Elizabeth Shea Fries 
The SEC and CFTC (the "Commissions") jointly issued proposed rules that would (a) require financial institutions and creditors subject to a Commission's jurisdiction to develop and implement a written identity theft prevention program addressing identity theft in connection with certain existing accounts or the opening of new accounts and (b) establish special requirements under which a credit or debit card issuer subject to a Commission's jurisdiction would have to assess the validity of change of address notifications under certain circumstances. The Commissions have issued the rule proposal because the Dodd-Frank Act amended the Fair Credit Reporting Act of 1970 ("FCRA") to add the Commissions to the list of federal agencies required to jointly prescribe and enforce identity theft red flags rules and card issuer rules.
The proposed rules are substantially similar to rules adopted in 2007 by the federal banking regulators and the FTC in response to prior amendments to FCRA; the proposed rules do, however, contain examples and minor language changes designed to facilitate compliance by entities under the Commissions' jurisdiction. Comments on the proposed rules must be submitted by May 7, 2012.
Goodwin Procter LLP is one of the nation's leading law firms, with a team of 700 attorneys and offices in Boston, Los Angeles, New York, San Diego, San Francisco and Washington, D.C. The firm combines in-depth legal knowledge with practical business experience to deliver innovative solutions to complex legal problems. We provide litigation, corporate law and real estate services to clients ranging from start-up companies to Fortune 500 multinationals, with a focus on matters involving private equity, technology companies, real estate capital markets, financial services, intellectual property and products liability.
This article, which may be considered advertising under the ethical rules of certain jurisdictions, is provided with the understanding that it does not constitute the rendering of legal advice or other professional advice by Goodwin Procter LLP or its attorneys. © 2012 Goodwin Procter LLP. All rights reserved.
