Achievable logoAchievable logo
SIE
Sign in
Sign up
Purchase
Textbook
Practice exams
Feedback
Community
How it works
Resources
Exam catalog
Mountain with a flag at the peak
Textbook
1. Common stock
2. Preferred stock
3. Debt securities
4. Corporate debt
5. Municipal debt
6. US government debt
7. Investment companies
8. Alternative pooled investments
9. Options
10. Taxes
11. The primary market
12. The secondary market
13. Brokerage accounts
14. Retirement & education plans
15. Rules & ethics
15.1 The regulators
15.2 Prohibited activities
15.3 Ethical duties
15.4 Other laws & regulations
15.4.1 Regulation S-P
15.4.2 Telephone Consumer Protection Act
15.4.3 Public communications
15.4.4 Proxy rules
15.4.5 Licenses & CE
15.4.6 Registered representative rules
15.4.7 Record retention requirements
16. Wrapping up
Achievable logoAchievable logo
15.4.1 Regulation S-P
Achievable SIE
15. Rules & ethics
15.4. Other laws & regulations

Regulation S-P

2 min read
Font
Discuss
Share
Feedback

Regulation S-P specifically deals with protecting the personal and private information of customers of financial firms. In the age of technology, certain measures must be taken to safeguard customer privacy.

Regulation S-P identifies what is considered private information. Items like social security numbers, suitability information, and account balances are obviously private. Data obtained through internet cookies is a little less obvious. Regardless, all of these items must be safeguarded properly.

In addition to identifying and protecting private information, Regulation S-P requires disclosure to customers when non-public information is provided to third parties. For example, your firm must tell you if it sends your non-public information to a third-party company to print checks. In order to print checks, the third party needs access to account numbers and private account information.

Firms must disclose this information at account opening and annually after. Additionally, the firm must provide the customer with an “opt-out” feature, which would prevent the firm from disclosing private information to third parties. Opt-out features must be easy to submit; check-off boxes on letters or e-mails are commonly utilized. More difficult measures, like requiring a customer to write a lengthy letter requesting the opt-out, are prohibited.

Key points

Regulation S-P

  • Safeguards non-public customer info
  • Firms must disclose when giving non-public info to third parties
  • Privacy notices provided:
    • At account opening
    • Annually after
  • Firms must provide easy “opt-out”

Sign up for free to take 3 quiz questions on this topic

All rights reserved ©2016 - 2025 Achievable, Inc.