Lawmakers Propose Bill to Require SEC to Protect Investment Adviser Information

House Financial Services Committee members David Scott and Barry Loudermilk drafted legislation to strengthen the SEC’s data-protection standards for sensitive, nonpublic proprietary information obtained from investment advisers.

The bipartisan "SEC Data Protection Act of 2025" would amend Advisers Act Section 204 ("Reports by investment advisers") to mandate that the SEC adopt uniform standards for how such information is requested, handled, stored, and safeguarded from unauthorized use or disclosure. This new framework would apply to all adviser information obtained through examinations, investigations, and other supervisory activities. Under the legislation, the agency must implement procedures that: (i) specify the circumstances under which proprietary information may be requested; (ii) establish safeguards calibrated to the sensitivity of the information; (iii) limit internal access to appropriate Commission personnel; and (iv) protect adviser information from unlawful use or disclosure. The bill requires the SEC to complete a notice-and-comment rulemaking within one year of enactment. 

MFA President and CEO Bryan Corbett said the bill represents a critical step toward strengthening regulatory safeguards for sensitive industry data.