NASD Notice to Members 00-66 - September 2000 

NASD Regulation Withdraws Proposed Rule Regarding Confidential Customer Financial Information; SEC Issues Regulation S-P, "Privacy of Consumer Financial Information"

Executive Summary

In light of recently enacted federal law, NASD Regulation, Inc. (NASD RegulationSM) has withdrawn its rule proposal announced in Notice to Members 97-12 (March 1997) regarding the use and release of confidential customer financial information. The new law mandates rulemaking governing the privacy of consumer financial information by federal agencies, including the Securities and Exchange Commission (SEC), thereby eliminating the need for NASD Regulation to pursue its own rules.


On June 22, 2000, the SEC issued Regulation S-P, "Privacy of Consumer Financial Information." Regulation S-P goes into effect on a voluntary basis starting November 13, 2000; it becomes mandatory on July 1, 2001.


Legal questions or comments concerning this Notice may be directed to Gregory Dean, Assistant General Counsel, Office of General Counsel, NASD Regulation, at (202) 728-8159. Other questions or comments concerning this Notice may be directed to Paul Voketaitis, Member Regulation, NASD Regulation, at (202) 728- 8843.