Fed Amends Interagency Guidelines Establishing Information Security Standards

Targeted News Service

WASHINGTON, July 1 -- The U.S. Federal Reserve System published the following rule in the Federal Register:

Interagency Guidelines Establishing Information Security Standards

A Rule by the Federal Reserve System on 07/01/2014

Publication Date: Tuesday, July 01, 2014

Agency: Federal Reserve System

Entry Type: Rule

Action: Final rule; technical amendment.

Document Citation: 79 FR 37166

Page: 37166 -37167 (2 pages)

CFR: 12 CFR 208

12 CFR 225

Agency/Docket Number: Docket No. R-1493 RIN 7100 AE-21

Document Number: 2014-15292

Shorter URL: https://federalregister.gov/a/2014-15292

Action

Final Rule; Technical Amendment.

Summary

The Board of Governors of the Federal Reserve System (Board) is amending Appendix D-2 of Regulation H and Appendix F of Regulation Y to correct citations to rules on privacy of consumer financial information.

DATES:

Effective Date: This rule is effective July 31, 2014.

FOR FURTHER INFORMATION CONTACT:

Clinton Chen, Attorney, (202) 452-3952, Legal Division. For the hearing impaired only, Telecommunication Device for the Deaf (TDD), (202) 263-4869.

SUPPLEMENTARY INFORMATION:

Section 501(b) of the Gramm-Leach-Bliley Act (GLB Act) [1] requires the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, and Office of Thrift Supervision (the Agencies), as well as the National Credit Union, the Securities and Exchange Commission, and the Federal Trade Commission, to establish appropriate standards for the financial institutions subject to their respective jurisdictions relating to the administrative, technical, and physical safeguards for customer records and information.

In February 2001, the Agencies issued a joint final rule implementing guidelines for establishing standards for safeguarding customer information under section 501(b) of the GLB Act. [2] The Board's versions of the guidelines (now entitled Interagency Guidelines Establishing Information Security Standards (Security Guidelines)) are codified in Appendix D-2 of Regulation H (12 CFR part 208) and Appendix F of Regulation Y (12 CFR part 225). In December 2004, the Agencies amended the Security Guidelines pursuant to section 628 of the Fair Credit Reporting Act, [3] which requires proper disposal of consumer information. [4] The Security Guidelines establish standards relating to administrative, technical, and physical safeguards to ensure the security, confidentiality, integrity and the proper disposal of consumer information. The Security Guidelines in the Board's Regulation H and Y currently cross-reference the definitions of "customer" and "customer information" in the Board's Regulation P (Privacy of Consumer Financial Information).

In May 2014, the Board approved the repeal of Regulation P, effective June 30, 2014. [5] The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) transferred rulemaking authority for a number of consumer financial protection laws from the Board and other agencies to the Consumer Financial Protection Bureau (CFPB), except with respect to certain motor vehicle dealers. [6] The transfer includes rulemaking authority for Regulation P under the financial privacy provisions of the GLB Act. [7] (The Dodd-Frank Act did not transfer responsibility for the Security Guidelines.) The CFPB has issued interim final rules that are substantially identical to the Board's Regulation P.

The Board is amending the cross-references in the Security Guidelines to refer to the CFPB's version of Regulation P. These amendments do not have any effect on the substantive requirements imposed by the Security Guidelines.

Administrative Procedure Act

In accordance with section 553(b) the Administrative Procedures Act (APA) (5 U.S.C. 553(b)), the Board finds, for good cause, that providing an opportunity for public comment is unnecessary. The amendments are solely technical amendments that change citations in two definitions from references to the Board's Regulation P to the CFPB's Regulation P, which contain identical definitions. The revisions result in no substantive change to the rule.

[*Federal RegisterVJ 2014-07-01]

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