SEC RULES REQUIRE THAT REGISTERED REPS MAINTAIN STRICT CONFIDENTIALITY OF FINANCIAL INFORMATION OF CUSTOMERS

The SEC has rules regarding the requirement that registered reps maintain confidentiality about the financial positions of their customers. This is called Regulation S-P.

FINRA's Content Outline for the Securities Industry Essentials Exam (SIE) includes privacy regulations in Section 3.2.4. This means that an SIE candidate should expect to see questions on privacy requirements on the SIE exam.

Bob Eder has detailed information about Regulation S-P in his Study for the Securities Industry Essentials (SIE) Exam. Here is a sample of Bob Eder's discussion on maintaining  privacy of financial information of customers:

"Regulation S-P                                                                                    (3.2.4)

The SEC has adopted Regulation S-P to assure that broker/dealers and investment advisory firms, as well as other firms that collect sensitive financial information of customers, comply with the law on safeguarding the privacy of personal non-public financial information. The notice must be easy to understand, conspicuous, not camouflaged in small type or hard-to-read font. It must be sent to all persons with whom a financial firm initiates or maintains a customer relationship."

Here is the link to FINRA's Content Outline for the SIE exam. See the references to Maintaining Confidentiality of Customers' Financial Positions in FINRA's Content Outline, Section 3.2.4.

Study for the Securities Industry Essentials (SIE) Exam is available from Amazon in both paperback and Kindle e-book versions. Here is the link to Bob Eder's book on Amazon.

For questions about Bob Eder's SIE manual, Study for the Securities Industry Essentials (SIE) Exam, or questions in general about the SIE exam, or about maintaining privacy of customers' financial information, feel free to email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001. See Bob Eder's Author Page on Amazon.com.

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