SUMMARY: The Federal Trade Commission is delaying the effective date set forth in 16 CFR 314.5 of portions of the amended Safeguards Rule, 16 CFR Part 314, as published on December 9, 2021, 86 FR 70272.
DATES: The effective date for portions of the final rule published December 9, 2021, at 86 FR 70272, 70307, is delayed from December 9, 2022, until June 9, 2023.
I. Final Rule and Delay of Effective Date
On December 9, 2021, the Federal Trade Commission (Commission) amended the Safeguards Rule, 16 CFR Part 314. While portions of the amended Rule became effective on January 10, 2022, certain provisions were originally to become effective December 9, 2022. 16 CFR 314.5.
1 The Commission is aware that there is a reported shortage of qualified personnel to implement information security programs and that supply chain issues may lead to delays in obtaining necessary equipment for upgrading security systems. In addition, these difficulties were exacerbated by the COVID-19 pandemic that has been active as financial institutions have attempted to come into compliance with the amended Safeguards Rule. These issues may make it difficult for financial institutions, especially
small ones, to come into compliance with the amended Safeguards Rule by December 9, 2022. Accordingly, the Commission is delaying the effective date of those portions of the Safeguards Rule that were to go into effect on December 9, 2022, until June 9, 2023. 2