Federal Trade Commission's Safeguards Rule taking effect June 9, 2023

As technology continues to improve and customer data becomes increasingly valuable, businesses must prioritize the security and confidentiality of sensitive data to maintain trust with their clients and comply with regulatory requirements.

One of those requirements is the Federal Trade Commission’s (FTC) Safeguards Rule which was issued in December 2022. Under the Gramm-Leach-Bliley Act (GLBA), the Safeguards Rule requires financial institutions, including tax preparers, to create a Written Information Security Plan (WISP) to protect their customer and client information. This rule retroactively took effect in January 2022, but some of the requirements were postponed until June 9, 2023.   

For more information on the FTC’s new rule taking effect on June 9, check out the linked articles below.

• Federal Trade Commission Press Release November 15, 2022 – “FTC Extends Deadline by Six Months for Compliance with Some Changes to Financial Data Security Rule”
• AICPA’s “Professional responsibilities in data security” – this page contains various resources and information and is open to all AICPA members https://www.aicpacima.com/resources/article/professional-responsibilities-in-data-security-for-tax-professionals
• Journal of Accountancy article February 1, 2023 – “How the FTC Safeguards Rule may affect your CPA firm”
• Tax Adviser article May 1, 2023 “Complying with the Safeguards Rule for information security”