A New Wave of Data Privacy Enforcement

December 08, 2014

Cybersecurity risks are a growing issue for the financial sector and regulators have taken notice. Earlier this year, Securities and Exchange Commission's Office of Compliance Inspections and Examinations (OCIE) announced in a Risk Alert that it would conduct examinations of over 50 registered broker-dealers and registered investment advisers, focusing on areas related to cybersecurity. In discussing the preliminary results of examinations conducted through September, OCIE's senior technology officer revealed that 87 percent of examined firms reported experiencing some form of "cyberincident." Examined firms ranked employee misconduct among their top concerns.

It's no wonder that SEC Chair Mary Jo White has indicated that cybersecurity threats are "of extraordinary and long-term seriousness."

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