Evolving technology has created the need for advanced regulations regarding the safeguarding of customer data.
In 2021, the FTC updated the requirements of the Standards for Safeguarding Customer Information, known as the Safeguards Rule, under the Gramm-Leach-Bliley Act.
The FTC issued the final rule in December 2022, which took effect retroactively to January 2022 with some postponed requirements going into effect on June 9, 2023.
The Safeguards Rule applies to all businesses significantly engaged in providing financial services, notably including professional tax preparers and CPA firms.
The revised rules provide more concrete guidance for businesses while keeping pace with current technology and emerging threats.
As part of the Safeguards Rule, covered financial services institutions — even sole proprietors and small firms — must develop, implement and maintain a written information security plan. Learn more.