SEC Data Protection Act
Summary
What This Bill Does
The SEC Data Protection Act amends the Investment Advisers Act of 1940. Within one year after enactment, the Securities and Exchange Commission must adopt, after notice and comment, policies and procedures reasonably designed to protect sensitive, nonpublic proprietary information that the Commission obtains or receives from investment advisers. The policies must address when SEC staff request proprietary information, safeguard information based on sensitivity, limit access to appropriate staff as determined by the Commission, and protect the information from unlawful use or disclosure.
Who Benefits and How
Investment advisers benefit from SEC procedures that safeguard sensitive nonpublic proprietary information submitted to the agency. Clients and investors benefit indirectly if adviser data submitted to the SEC is less vulnerable to unlawful use or disclosure. Compliance officers benefit from clearer rules around SEC requests for proprietary information. SEC staff benefit from formal procedures for handling sensitive adviser information.
Who Bears the Burden and How
SEC must conduct notice-and-comment rulemaking and adopt data-protection policies within one year. SEC examination and enforcement staff must follow request, safeguard, access, and disclosure procedures. Investment advisers may need to identify sensitive proprietary information when responding to SEC requests. SEC systems and data governance teams must implement access controls and safeguards based on information sensitivity.
Key Provisions
- Requires SEC data-protection policies within one year after enactment.
- Requires notice-and-comment adoption of the policies and procedures.
- Requires standards for SEC requests for investment adviser proprietary information.
- Requires safeguards based on sensitivity and limits access to appropriate staff.
- Requires protection from unlawful use or disclosure.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Requires the SEC within one year, after notice and comment, to adopt policies and procedures protecting sensitive nonpublic proprietary information received from investment advisers from unlawful use or disclosure, including request standards, safeguards, staff-access limits, and disclosure protections.
Key Policy Areas
SEC, Investment Advisers, Data Protection
Primary Purpose
Requires the SEC within one year, after notice and comment, to adopt policies and procedures protecting sensitive nonpublic proprietary information received from investment advisers from unlawful use or disclosure, including request standards, safeguards, staff-access limits, and disclosure protections.
Policy Domains
Substantive provisions
Identified Gains
- Investment advisers submitting proprietary information
- Investment adviser clients
- Investors whose data is reflected in adviser records
- Investment adviser compliance officers
- SEC staff handling sensitive data
Identified Costs
- Securities and Exchange Commission rulemaking staff
- SEC examination staff
- SEC enforcement staff
- Investment advisers responding to SEC requests
- SEC data governance teams
Sponsors
Legislative Progress
In CommitteeMr. David Scott of Georgia (for himself, Mr. Loudermilk, Mr. …
Referred to the House Committee on Financial Services.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
SEC data governance teams, SEC examination staff, Securities and Exchange Commission rulemaking staff
Investment advisers submitting proprietary information
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology