Regulatory Notice 08-69

Alert to Member Firms About the Federal Trade Commission’s FACT Act Regulations and the Announcement of the FTC’s Decision to Delay Enforcement of the Red Flags Rule until May 1, 2009

Executive Summary

FINRA is issuing this Notice to alert member firms about the Federal Trade Commission's (FTC's) Fair and Accurate Credit Transactions Act of 2003 (FACT Act) regulations and the FTC's decision to delay enforcement of the Red Flags Rule until May 1, 2009, to give member firms additional time to develop and implement their procedures. By that date, member firms subject to these regulations must have in place a written program to identify, detect and respond to patterns, practices or specific activities that could indicate identity theft.

Note: FTC's Red Flags Rule enforcement began Jan. 1, 2011. On July 21, 2011, the Dodd-Frank Act transferred responsibility for identity theft red flag rules and guidelines to the SEC and CFTC for the entities they regulate. On February 28, 2012, the SEC and CFTC jointly proposed for comment identity theft red flag rules and guideline that are substantially similar to the FTC’s and do not propose new requirements or cover new entities. The comment period closed May 7, 2012. 8/20/09: Section 1 of p. 3 of the Notice was updated to reflect current FTC guidance on the scope of the term "transaction account."