The SEC published the adopting release for Regulation S-AM which limits a person’s use of “eligibility information” received from an affiliate to solicit a consumer for marketing purposes, unless the consumer has been given notice and a reasonable opportunity and a reasonable and simple method to opt out of such solicitations. The final rules implement requirements of the Fair Credit Reporting Act, as amended by the Fair and Accurate Credit Transactions Act of 2003, that also apply to the federal banking agencies and the FTC. Goodwin Procter will be issuing a client alert that discusses Regulation S-AM in greater detail and compares it to regulations already adopted by the federal banking agencies and the FTC. The new rule, which applies to investment advisers, transfer agents, brokers, dealers and investment companies registered with the SEC has a January 1, 2010 compliance date.
Alert August 18, 2009