Proposed Rule to Expand the Scope of Consumer Financial Privacy
Summary
SIFMA sent comments to the CFTC on Privacy of Consumer Financial Information; Conforming Amendments Under Dodd-Frank Act (“Notice”) which proposes to implement certain provisions in Titles VII and X of the Dodd Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”). SIFMA members are committed to safeguarding the security, confidentiality and integrity of customers’ information. SIFMA generally supports the proposed rules for compliance with the Dodd-Frank Act and the Gramm-Leach-Bliley Act (“GLBA”), and offers these comments on the Notice to assist the Commission in developing regulations that accomplish congressional goals without causing unnecessary disruption to the operation of the financial markets.
Excerpt
David A. Stawick
Secretary
Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, N.W.
Washington, D.C. 20581
Re: RIN Number 3038–AD13; 17 CFR Part 160; 75 FR 66014
Privacy of Consumer Financial Information;
Conforming Amendments Under Dodd-Frank Act
Dear Mr. Stawick:
The Securities Industry and Financial Markets Association (“SIFMA”)1 appreciates the opportunity to provide comments on Commodity Futures Trading Commission (“CFTC”) RIN
Number 3038–AD13, Privacy of Consumer Financial Information; Conforming Amendments Under Dodd-Frank Act (“Notice”) which proposes to implement certain provisions in Titles VII and X of the Dodd Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”).2 SIFMA members are committed to safeguarding the security, confidentiality and integrity of customers’ information. SIFMA generally supports the proposed rules for compliance with the Dodd-Frank Act and the Gramm-Leach-Bliley Act (“GLBA”),3 and offers these comments on the Notice to assist the Commission in developing regulations that accomplish congressional goals without causing unnecessary disruption to the operation of the financial markets.
The Standard for Relation to State Laws Should Be the Same as the Standard under Section 507(b) of the GLBA, as amended by the Dodd-Frank Act.
SIFMA believes that proposed section 160.17, “Relation to state laws,” which currently incorporates a standard taken from Section 1041 of Title X of the Dodd-Frank Act, should instead incorporate a standard similar to Section 507(b) of the GLBA, as amended by Section 1093 of the Dodd-Frank Act. As the CFTC explained at the beginning of the preamble, the Commission’s proposed rules are intended to implement Section 1093 of the Dodd-Frank Act, which amends Title V of the GLBA.4 Since the purpose of the proposed rules is to implement the Dodd-Frank Act’s amendments to the GLBA, the proposed rules should reflect the standard in the GLBA, as amended. SIFMA believes that maximum consistency with the standard in the GLBA comports with the harmonizing purposes of the proposed rule, and has the added benefit of maintaining the settled expectations of a financial sector that has long complied with the standards of the GLBA. SIFMA also believes that Section 1041 of the Dodd-Frank Act is not applicable here, as that section addresses the preemptive effect of Title X of the Dodd-Frank
Act (the Consumer Financial Protection Act), whereas Section 507(b) of the GLBA addresses the preemptive effect of the GLBA and regulations issued pursuant to the GLBA.