On August 13, the Federal Reserve Board proposed amendments to Regulation S, which implements the Right to Financial Privacy Act (RFPA). Regulation S sets the rates and conditions under which a government agency must reimburse a financial institution for costs incurred in producing customer financial records under RFPA. The changes are being proposed to reflect more accurately the costs of producing electronically stored information.
The amendments include (i) updating the fees for which a financial institution may seek reimbursement, (ii) replacing prior “per diskette” charges with a “per electronic production” flat fee, and (iii) prohibiting reimbursement on a per-page basis for printing electronically stored information. The proposed rules require that certain costs (e.g., photocopying) will only be reimbursable if the institution has reproduced records that are not maintained electronically or where the government authority has requested specifically that such documents be produced in hardcopy. The proposed amendments also provide for an automated mechanism to update periodically the labor rates using Bureau of Labor Statistics.
Comments must be submitted on or before September 29.