Stall No More – Implementing Reg S-P Amendments

In a year marked by a change in administration, the formal withdrawal of proposed rules and the extension of compliance dates for certain adopted rules, many hoped that the amendments to Regulation S-P (“Reg S-P”) would follow suit. Unfortunately, at this point, that looks to not be the case and many fund sponsors are preparing for implementation.

New Requirements.

In May 2024, the SEC adopted amendments to Reg S-P, which regulates how certain financial institutions handle nonpublic personal information about consumers. Among other things, these amendments require SEC registered investment advisers with $1.5 billion or more in assets under management to take several steps, including (i) developing and implementing an incident response program to detect, respond to, and recover from unauthorized access to or use of customer information and (ii) providing timely notifications to individuals affected by such unauthorized access.