The Financial Industry Regulatory Authority has developed a new, optional template that firms may use as a guide when fulfilling their requirements under the Federal Trade Commission’s “Red Flags Rule.” If a firm adopts this template as a guide, the firm must modify the template to be reflective of its operations. The Red Flags Rule, which implements obligations imposed by the Fair and Accurate Credit Transactions Act of 2003, as amended, requires specified firms to create a written Identity Theft Prevention Program that is designed to identify, detect and respond to “red flags” (e.g., patterns, practices or specific activities) that could indicate identity theft.  

Click here to read the Information Notice.