The Securities and Exchange Commission (SEC) has announced an exemption from reporting certain personally identifiable information (PII) to the Consolidated Audit Trail (CAT) for natural persons. Under the new rule, names, addresses, and years of birth will no longer be required, a move aimed at enhancing data security and reducing the risk of identity theft in case of a breach.
The CAT, introduced to improve market transparency and oversight, will continue to function effectively, as the SEC has determined that these specific PII elements are not essential to achieving its objectives. Anonymized customer IDs will still be generated to ensure effective market surveillance.
Acting SEC Chairman Mark Uyeda emphasized that the decision does not compromise regulatory enforcement. “Bad actors engaging in insider trading, market manipulation, and other schemes should be forewarned—the Commission still has more than sufficient investigative tools to hold them accountable,” he stated.
This update builds on a 2020 SEC exemption that removed the requirement to report Social Security numbers and other highly sensitive data to the CAT. The latest exemption reflects the SEC’s ongoing effort to balance regulatory oversight with cybersecurity and privacy protections.
To find out more details please visit : https://www.sec.gov/