Wagner proposes new bill to safeguard personal financial privacy of Americans
In a continual effort to safeguard the personal financial information of Americans, Congresswoman Ann Wagner (R-MO) reintroduced the Protecting Investors’ Personally Identifiable Information Act in the 119th Congress. The legislation aims to prioritize the privacy and security of individuals by limiting the exposure of Personally Identifiable Information (PII) in financial transactions.
Expressing her commitment to protecting the personal data of Americans, Rep. Ann Wagner emphasized the necessity of making this safeguard permanent to instill confidence in Main Street investors. The recent decision by the Securities and Exchange Commission (SEC) to exempt the reporting of PII in the Consolidated Audit Trail was a step in the right direction, but more comprehensive measures are crucial to ensure the privacy of individuals in financial dealings.
Highlighting concerns regarding the current practices of the SEC, Rep. Barry Loudermilk (GA-11) stressed the unconstitutionality and needless collection of personal financial information through the Consolidated Audit Trail. These practices not only pose cybersecurity risks but also leave American investors vulnerable to potential breaches by foreign adversaries and cybercriminals. The Protecting Investors’ Personally Identifiable Information Act, spearheaded by Rep. Loudermilk, aims to restrict the automatic collection of investors’ PII, mitigating risks of accidental or intentional breaches. The bill proposes that the SEC should only request such data when directly tied to investigations or enforcement actions related to federal securities laws.
Senator John Kennedy (R-LA) echoed concerns about the security of personal information held by the SEC, emphasizing the potential jeopardy faced by American investors due to the Consolidated Audit Trail. Introducing the Senate companion bill, S. 658, Senator Kennedy aimed to prevent the unnecessary collection and storage of individuals’ personal information, which could expose them to cyber threats and breaches by malicious actors.
Industry leaders and associations have also expressed their support for legislative efforts aimed at protecting investors’ PII. The American Securities Association President & CEO Chris Iacovella highlighted the risks posed by the SEC’s national registry, making investors’ personal and financial information vulnerable to hacks by foreign entities. Meanwhile, the Securities Industry and Financial Markets Association (SIFMA) commended the bipartisan effort to safeguard investors’ PII, aligning with the recent exemption provided by the SEC to avoid reporting such data to the Consolidated Audit Trail (CAT).
Overall, the reintroduction of the Protecting Investors’ Personally Identifiable Information Act underscores the ongoing commitment of lawmakers to prioritize the privacy and security of Americans’ personal financial information. By restricting unnecessary data collection and enhancing safeguards against cyber threats, the legislation aims to instill confidence among Main Street investors and protect individual privacy in financial transactions.
