On 1/1/11, the Federal Trade Commission (FTC) began enforcing its Fair and Accurate Credit Transactions Act of 2003 (FACT Act) Red Flags Rule.  The Red Flags Rule requires that each "financial institution" or "creditor" - which includes most broker-dealers and securities firms - implement a written program to detect, prevent and mitigate identity theft in connection with the opening or maintenance of "covered accounts."

Covered Accounts.  Include consumer accounts that permit multiple payments or transactions, such as a retail brokerage account, credit card account, margin account, checking or savings account, or any other accounts with a reasonably foreseeable risk to customers or your firm from identity theft.

    FINRA's Optional Template.   Firms may use the template as a guide when fulfilling their requirements under the FTC's Red Flags Rule.  The template and other resource sites are available from FINRA.  To access, go to:   [FINRA Red Flag Rule Page].

    FINRA Regulatory Notice 8-69.   Firms also may obtain additional information about FACT Act regulations, by going to:   [FINRA RegNote 8-69].