Subpanel plans hearings on data security notification regulation, ‘de-risking’ impact on financials

Hearings on the regulatory regime affecting data security and how notifications of breaches are reported, and an examination of “de-risking” and its impact on access to financial services, are scheduled in the House next week, on successive days.

Witness lists for either hearing have not yet been published.

The financial institutions subcommittee will look at regulations dealing with data security and breach notification on Wednesday at 10 a.m. Data security and breach response has been of topic recently: at a hearing Feb. 6 before the full House Financial Services Committee, Treasury Secretary Steven Mnuchin – in response to a question about the massive data breach at Equifax credit reporting agency last summer, and reports that the Consumer Financial Protection Bureau (CFPB) had throttled back an investigation into how it happened – said he hadn’t spoken about the issue to CFPB Acting Director Mick Mulvaney. “But I will,” he said. “It is something I am going to discuss with him.”

The Equifax data breach, reported last September, resulted in the exposure of sensitive personal information of 143 million Americans, according to the Federal Trade Commission (FTC).

The second hearing, on examining de-risking and its effect on access to financial services (also scheduled by the financial institutions subcommittee) will be held Thursday at 10 a.m.

“De-risking” is the practice of some financial institutions exiting relationships with and closing the accounts of clients considered to present “high risk” to their operations. Rather than manage the risky clients, the financial institutions opt to end the relationships altogether, consequently minimizing their own risk exposure while leaving clients bank-less.

Examining the Current Data Security And Breach Notification Regulatory Regime ”

Examining De-risking and its Effect on Access to Financial Services