HR 1340 IH, Securities Investors Privacy Enhancement
Act.
Sponsor: Rep. Edward Markey (D-MA).
Date introduced: March 25, 1999.
Source: Library of Congress.
| 106th CONGRESS 1st Session |
H. R. 1340 |
To require brokers, dealers, investment companies, and investment advisers to protect the confidentiality of financial information obtained concerning their customers, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
March 25, 1999
Mr. MARKEY introduced the following bill; which was referred to the Committee on Commerce
A BILL
To require brokers, dealers, investment companies, and investment advisers to protect the confidentiality of financial information obtained concerning their customers, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
This Act may be cited as the `Securities Investors Privacy Enhancement Act of 1999'.
Section 15A(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78o-3(b)) is amended by adding at the end the following new paragraph:
`(14) The rules of the association include rules to require members of the association--
`(A) to protect the confidentiality of financial information of, and relating to, their customers;
`(B) to inform their customers whenever--
`(i) financial information is being collected that pertains to such customers; or
`(ii) a member intends (with the approval of the customer pursuant to subparagraph (C)(ii)) to offer financial information pertaining to such customer to any other person, including an affiliate or agent of such member; and
`(C) to refrain, and to take measures reasonably designed to prevent their agents, from using, disclosing, or permitting access to individually identifiable financial information pertaining to any customer except--
`(i) for the provision of the financial services from which such information is derived, or services necessary to, or used in, the provision of such services;
`(ii) upon the affirmative written request, or with the affirmative written consent, of the customer to whom the information pertains; or
`(iii) upon request of the Commission or as otherwise required by law.'.
Section 38 of the Investment Company Act of 1940 (15 U.S.C. 80a-37) is amended by adding at the end the following new subsection:
`(d) PRIVACY OF FINANCIAL INFORMATION- The Commission, as it deems necessary or appropriate in the public interest or for the protection of investors, shall adopt rules or regulations to require any investment company--
`(1) to protect the confidentiality of financial information of, and relating to, the beneficial owners of the outstanding securities of the investment company;
`(2) to inform a beneficial owner of the outstanding securities of the investment company whenever--
`(A) financial information is being collected that pertains to such beneficial owner; or
`(B) the investment company intends (with the approval of the beneficial owner pursuant to paragraph (3)(B)) to offer financial information pertaining to such beneficial owner to any other person, including an affiliate or agent of such investment company; and
`(3) to refrain, and to take measures reasonably designed to prevent their agents, from using, disclosing, or permitting access to individually identifiable financial information pertaining to any such beneficial owner except--
`(A) for the provision of the financial services from which such information is derived, or services necessary to, or used in, the provision of such services;
`(B) upon the affirmative written request, or with the affirmative written consent, of the beneficial owner to whom the information pertains; or
`(C) upon request of the Commission or as otherwise required by law.'.
Section 211 of the Investment Advisers Act of 1940 (15 U.S.C. 80b-11) is amended by adding at the end the following new subsection:
`(e) PRIVACY OF FINANCIAL INFORMATION- The Commission, as it deems necessary or appropriate in the public interest or for the protection of investors, shall adopt rules or regulations to require any investment adviser--
`(1) to protect the confidentiality of financial information of, and relating to, the clients of the investment adviser;
`(2) to inform a client of the investment adviser whenever--
`(A) financial information is being collected that pertains to such client; or
`(B) the investment adviser intends (with the approval of the client pursuant to paragraph (3)(B)) to offer financial information pertaining to such client to any other person, including an affiliate or agent of such investment adviser; and
`(3) to refrain, and to take measures reasonably designed to prevent their agents, from using, disclosing, or permitting access to individually identifiable financial information pertaining to any such client except--
`(A) for the provision of the financial services from which such information is derived, or services necessary to, or used in, the provision of such services;
`(B) upon the affirmative written request, or with the affirmative written consent, of the client to whom the information pertains; or
`(C) upon request of the Commission or as otherwise required by law.'.