Boozman, Kennedy Champion Legislation to Protect Investor Privacy

WASHINGTON—
U.S. Senator John Boozman (R-AR) joined Senator John Kennedy (R-LA) to introduce the
Protecting Investors’ Personally Identifiable Information Act
which would prohibit the Securities and Exchange Commission (SEC) from requiring brokers to submit investors’ personally identifiable information to its data tracking system, the Consolidated Audit Trail (CAT), in the wake of recent cyber-attacks and ongoing vulnerabilities.
“Investors rely on the SEC to safeguard sensitive financial information. Requiring brokers to submit investors’ private, identifiable information, including social security numbers, into a central database will invite even more attempts to compromise Americans’ data privacy. I am pleased to join my colleagues to reject this ill-advised scheme and protect personal information,”
said Boozman
.
“Americans assume their private information is secure when they invest money in the U.S. stock market. However, the SEC’s unlawful Consolidated Audit Trail could put their data in jeopardy. My bill would protect American investors from foreign enemies and bad actors by preventing the SEC from collecting personal information it doesn’t need and storing it on a dangerous database,”
said Kennedy
.
The
Protecting Investors’ Personally Identifiable Information Act
would:
Prohibit the SEC from requiring brokers to submit investors’ personally identifiable information to the CAT, with the exception that the SEC can obtain personally identifiable information related to investors only by requesting it on a case-by-case; and
Require the SEC to delete personally identifiable information once the agency resolves any investigation or issue that required that information.
The legislation is also cosponsored by Senators Katie Britt (R-AL), Tom Cotton (R-AR), Steve Daines (R-MT), Jerry Moran (R-KS), Pete Ricketts (R-NE), Mike Lee (R-UT), Rick Scott (R-FL), Bill Hagerty (R-TN), Tommy Tuberville (R-AL) and Mike Rounds (R-SD).
Companion legislation was introduced in the U.S. House of Representatives by Congressman Barry Loudermilk (R-GA-11).
The
Protecting Investors’ Personally Identifiable Information Act
is supported by the American Securities Association.
“The SEC can conduct responsible oversight of our equity markets without collecting the most sensitive personal information of working families, retirees, and savers,”
said American Securities Association CEO Chris Iacovella
.
Click
here
for full text of the legislation.