H.R. 1483: Protecting Investors’ Personally Identifiable Information Act

This bill, titled the Protecting Investors’ Personally Identifiable Information Act, aims to safeguard the personally identifiable information (PII) of investors in the context of securities trading and reporting. It seeks to amend existing regulations requiring the collection of PII by prohibiting the Securities and Exchange Commission (SEC) from mandating national securities exchanges, national securities associations, or their members to collect or provide such information as part of audit trail reporting requirements related to trading activities.

Key Provisions of the Bill

• Prohibition on Collecting Personally Identifiable Information: The SEC will not require any national securities exchange, national securities association, or their members to report PII associated with market participants. This includes information needed for compliance with consolidated audit trail reporting requirements.
• Definition of Personally Identifiable Information: The bill defines PII as information that can be used to identify an individual, either on its own or in combination with other data. Examples of PII include an individual’s name, address, date of birth, Social Security number, and contact details such as email addresses and phone numbers.

Impact of the Bill

The proposed legislation aims to enhance privacy protections for investors by limiting the amount of personal information that financial institutions are required to collect and maintain. By doing so, the bill also seeks to reduce the risk of data breaches and unauthorized access to individuals' sensitive information in the financial sector.

If passed, this act could lead to significant changes in how audit trails are maintained and reported in the securities market, with a strong emphasis on protecting investor confidentiality.

Relevant Companies

• ICE (Intercontinental Exchange, Inc.): This company operates financial and commodity marketplaces, including securities exchanges that may be affected by new reporting requirements.
• NDAQ (Nasdaq, Inc.): As a global electronic marketplace for buying and selling securities, Nasdaq may need to adjust its reporting processes if PII regulations change.
• GS (The Goldman Sachs Group, Inc.): As a prominent investment bank, Goldman Sachs may be impacted in terms of the data they report for compliance with audit regulations.