[13103]
January 31, 2001
TO: BOARD OF GOVERNORS No. 9-01
PRIMARY CONTACTS - MEMBER COMPLEX No. 9-01
SEC RULES MEMBERS No. 9-01
RE: INSTITUTE PAPER ON PRIVACY COMPLIANCE FOR MUTUAL FUNDS
Enclosed is a copy of an Institute paper entitled “Privacy of Consumer Financial
Information: Mutual Fund Compliance with Regulation S-P.” The Institute has prepared this
paper to assist Institute members in complying with Securities and Exchange Commission
Regulation S-P, a detailed and complex regulatory scheme designed to protect the privacy of
individuals who obtain a financial product or service for personal, family or household use.
Regulation S-P applies to all mutual funds and other investment companies, as well as to
broker-dealers and federally registered investment advisers. It has a mandatory compliance
date of July 1, 2001, and members of the SEC staff have indicated that compliance with
Regulation S-P will be an area of focus in examinations conducted after that date.
Given the complex and novel nature of the regulation and the fast-approaching
compliance deadline, firms subject to Regulation S-P must assess its impact on their operations
and design a strategy for compliance. This paper is intended to assist in that process by
highlighting the key features of the regulation and suggesting strategies for addressing
compliance issues that may arise from the perspective of mutual funds.
As noted, the paper is not intended as a substitute for appropriate professional advice
with respect to the applicability of Regulation S-P in particular circumstances, nor is it intended
to express any legal opinion or conclusion concerning any specific action, policy or procedure.
A special industry working group and the Institute’s outside counsel, Dechert, assisted
Institute staff in drafting the paper. In addition, a draft of the paper was circulated to the
Broker-Dealer Advisory Committee, Compliance Advisory Committee, SEC Rules Committee,
and Transfer Agent Advisory Committee.
2Should you have any questions regarding the paper or related issues, please direct them
to Tami Reed at (202) 326-5825, Frances Stadler at (202) 326-5822 or Bob Grohowski at (202) 371-
5430.
Craig S. Tyle
General Counsel
Enclosure