Pulaski Times

U.S. Senators John Boozman and John Kennedy have introduced the Protecting Investors’ Personally Identifiable Information Act, a legislative measure aimed at safeguarding investor privacy. The proposed law seeks to prevent the Securities and Exchange Commission (SEC) from mandating brokers to submit investors' personally identifiable information to its Consolidated Audit Trail (CAT) system. This initiative comes in response to recent cyber-attacks and existing vulnerabilities.

Senator Boozman emphasized the importance of protecting sensitive financial data, stating, “Investors rely on the SEC to safeguard sensitive financial information. Requiring brokers to submit investors’ private, identifiable information, including social security numbers, into a central database will invite even more attempts to compromise Americans’ data privacy. I am pleased to join my colleagues to reject this ill-advised scheme and protect personal information.”

Senator Kennedy expressed concerns about the potential risks posed by the SEC's CAT system: “Americans assume their private information is secure when they invest money in the U.S. stock market. However, the SEC’s unlawful Consolidated Audit Trail could put their data in jeopardy. My bill would protect American investors from foreign enemies and bad actors by preventing the SEC from collecting personal information it doesn’t need and storing it on a dangerous database.”

The legislation outlines specific measures, including prohibiting the SEC from requiring brokers to submit personally identifiable information except on a case-by-case basis and mandating the deletion of such data once any related investigation or issue is resolved.

The bill has garnered support from several co-sponsors, including Senators Katie Britt, Tom Cotton, Steve Daines, Jerry Moran, Pete Ricketts, Mike Lee, Rick Scott, Bill Hagerty, Tommy Tuberville, and Mike Rounds. Companion legislation has been introduced in the House of Representatives by Congressman Barry Loudermilk.

The American Securities Association backs this legislative effort. Its CEO Chris Iacovella stated: “The SEC can conduct responsible oversight of our equity markets without collecting the most sensitive personal information of working families, retirees, and savers.”