The SEC And FINRA Increase Scrutiny Of Regulated Firms’ Cybersecurity

W
WilmerHale

Contributor

WilmerHale provides legal representation across a comprehensive range of practice areas critical to the success of its clients. With a staunch commitment to public service, the firm is a leader in pro bono representation. WilmerHale is 1,000 lawyers strong with 12 offices in the United States, Europe and Asia.
Continuing their heightened focus on the information security practices of regulated fi rms, both the Securities and Exchange Commission (SEC) ..
United States Corporate/Commercial Law

Continuing their heightened focus on the information security practices of regulated firms, both the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) released reports on February 3, 2015, summarizing the results of cybersecurity examination sweeps they had conducted since last year.1 Speaking at the SIFMA/FINRA Cybersecurity Conference the following day in New York, Vincente Martinez, the Chief of the Office of Market Intelligence in the SEC's Enforcement Division confirmed that, relying in part on the information in the reports, the SEC is actively examining both how its existing authorities can be used to bring more enforcement actions when firms fail to provide sufficient protection for the confidentiality and integrity of customer information and how those authorities might be broadened and strengthened. FINRA, too, can be expected to increase its scrutiny of firms' data security practices. The sweeps reports offer firms glimpses of the SEC's and FINRA's likely enforcement priorities and confirm that cybersecurity should be a high priority for investment advisers in 2015.

Please click here to read the text/footnotes of this article in its entirety

Originally published in the April 2015 edition of The Investment Lawyer, Vol. 22, Number 4, pages 26–28.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More