SEC Data Protection Act

HR 6161, the SEC Data Protection Act, requires the Securities and Exchange Commission (SEC) to establish policies protecting sensitive nonpublic data provided by investment advisers. The bill mandates that within one year of enactment, the SEC create rules addressing when it requests such data, safeguarding it based on sensitivity, restricting access to authorized staff, and preventing unauthorized use or disclosure. These policies must be developed through a notice-and-comment rulemaking process. The law directly affects investment advisers who share proprietary information with the SEC, ensuring their data is handled securely under new federal standards.