A rule recently adopted by the Federal Trade Commission will affect investment companies that offer transaction accounts, requiring that they have board approval of an identity theft prevention program by Nov. 1, 2008. The rule, issued as part of a joint agency rulemaking, implements part of the Fair and Accurate Credit Transactions Act of 2003, which amended the Fair Credit Reporting Act. The rule impacts, for example, money market funds or any other investment company that permits payment or transfers to third parties such as through check writing or wire transfers.

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Source: Investment Management Alert
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