FTC seeks comment on information safeguard rule

WASHINGTON-The Federal Trade Commission (FTC) is requesting comment on its proposed information security regulation required under the Gramm-Leach-Bliley Act (GLBA). The law’s security provisions require the FTC and other federal agencies to develop standards for financial institutions relating to administrative, technical and physical safeguards for customer information. The purpose for these standards includes the security and confidentiality of customer records and information; protecting against anticipated threats or hazards; and protecting against unauthorized access to, or use of, such data that could result in “substantial harm or inconvenience to the customer.” The rule would affect all non-federally insured credit unions that do not fall under NCUA’s jurisdiction. The agency stated that each financial institution must designate employees to coordinate its program; assess risks in each area of operations; implement an information security program to control these risks; require service providers to use appropriate safeguards; and adapt its program to changes in business that may affect the safeguards. Comments are due to the FTC by Oct. 9, 2001.