H.R. 6161: SEC Data Protection Act (119th Congress) Bill Summary

This bill, known as the SEC Data Protection Act, aims to enhance the protection of sensitive information that the Securities and Exchange Commission (SEC) collects from investment advisers. Here are the key provisions of the bill:

Data Protection Policies

The SEC is required to establish specific policies and procedures to protect sensitive, nonpublic information received from investment advisers. These policies must be developed within one year of the bill’s enactment and will include the following elements:

Request Procedures: The policies will outline the circumstances under which the SEC may request proprietary information from investment advisers.
Information Safeguards: The SEC must ensure that the information is safeguarded appropriately, taking into account its level of sensitivity.
Access Restrictions: Access to this sensitive information will be limited to specific SEC staff members as determined by the Commission.
Protection Against Misuse: The SEC is responsible for protecting the information from unlawful use or disclosure.

Overall Purpose

The primary goal of the bill is to ensure that sensitive data shared with the SEC by investment advisers is appropriately protected against unauthorized access, misuse, and disclosure. This bill responds to growing concerns about data security and the handling of proprietary information in financial markets.