The Federal Trade Commission has once again delayed enforcement of the new "red flags rule", this time until June 1 of next year. The FTC granted this latest reprieve "at the request of members of Congress", according to the regulator. The original compliance deadline was November 1 of last year, but it quickly became apparent that many FTC-regulated entities would not meet that deadline. The deadline was extended several times and was set for November 1, a date many thought was set in stone.
Both the FTC and the Financial Industry Regulatory Authority have provided guidance to affected firms in recent months, including an FTC Red Flags Rule template. The red flags rule implements obligations imposed by the Fair and Accurate Credit Transactions Act of 2003. It requires specified firms, any "financial institution" or "creditor" that offers "covered accounts", to create a written Identity Theft Prevention Program. The ITPP must be designed to identify, detect and respond to "red flags"
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