On December 9, 2021, the FTC revised the Safeguards Rule intending to strengthen data security to help protect customers’ financial. The revised FTC Safeguards Rule will require non-banking financial institutions to develop, implement, and maintain a comprehensive security system to keep customer information safe. The original deadline was December 9, 2022.

The FTC decided to extend the deadline based on reports, including a letter from the Small Business Administration’s Office of Advocacy, that there is a shortage of qualified personnel to implement information security programs and that supply chain issues may lead to delays in obtaining necessary equipment for upgrading security systems.

“NIADA and its members are thrilled that the FTC is finally listening to reason regarding the Safeguards Rule,” said Bob Voltmann, CEO of NIADA.

NIADA looks forward to engaging with the FTC in the future on this issue.