Red Flag Rules Delayed
During our current seminar series, entitled "Success Basics for Community Association Board Members," our attorneys have been asked about the new "Red Flag" Rules. The Federal Trade Commission (FTC) has announced the implementation of "Red Flag" Rules which would require financial and creditor institutions with certain types of accounts to implement various rules, regulations, and safeguards to protect against identity theft.
While these new rules were intended for financial institutions such as banks and mortgage companies, the language of the regulations was so broad that they may also apply to certain community associations and property management companies. In part due to this expansive language, the FTC has delayed enforcement of the Red Flag Rules until June 1, 2010.
In order to clarify its positions, the FTC plans on issuing additional guidance to parties effected by these new rules. In the meantime, the Community Association Institute will continue to communicate its concerns to the FTC regarding the implications these rules will have on community associations. As soon as the FTC releases its guidance, the attorneys at Kaman & Cusimano will review it and advise our clients on how best to comply with the rules and reasonable safeguard against identity theft. Stay Tuned to this blog for more information.