The Securities and Exchange Commission (SEC) issued Regulation S-P on June 22, 2000 to protect the privacy of financial information. Under this regulation, financial institutions must provide their customers with notice of their privacy policies and practices. These organizations are prohibited from disclosing private personal information about a consumer to nonaffilated third parties, unless the institution provides certian information to the consumer and the consumer has not elected to opt out of the disclosure.
SEC Regulation S-P rules are intended to protect consumers against unauthorized access to information contained in their own consumer reports, and to protect against identity theft and fraud. All financial institutions must adopt policies and procedures that address administrative, technical, and physical safeguards for the protection of customer records and information.