The Federal Trade Commission (“FTC”) has once again delayed the enforcement of the Red Flags Rule (the “Rule”) until December 31, 2010. The delay comes at the request of members of Congress while it considers legislation that would affect the scope of entities covered by the Rule. It is our hope that any action on Congress’ part will give clarity to advisers who are unsure whether they are subject to the Rule.

Should Congress pass legislation limiting the scope of entities covered by the Rule with an effective date prior to December 31, 2010, the FTC will begin enforcement as of that effective date.

Please see April 21, 2010 post for a brief summary of the Rule requirements.