On November 26, the Financial Industry Regulatory Authority (FINRA)issued a Regulatory Notice highlighting recent Federal Trade Commission regulations (issued jointly with a number of federal banking regulators) implementing provisions in the Fair Credit Transactions Act of 2003. The regulations impose new requirements on firms to develop and implement a written program to detect, prevent and mitigate identity theft in connection with the opening or maintenance of accounts (Red Flag Rules). TheRed Flag Rules apply to every “financial institution” or “creditor” offering or maintaining “covered accounts,” as such terms are defined in the Red Flag Rules. In FINRA’s view, the Red Flag Rules will apply to most member firms. The Red Flag Rules will take effect on May 1, 2009.