SEC Fines Broker-Dealer and Advisory Firms for Cybersecurity Lapses

The US financial market regulator, the Securities and Exchange Commission (SEC), has imposed sanctions on eight broker-dealer and financial advisory companies for lapses in their cybersecurity policies and measures. Three firms are facing a combined monetary penalty of $750,000.

“Investment advisers and broker-dealers must fulfill their obligations concerning the protection of customer information,” Kristina Littman, Chief of the SEC Enforcement Division’s Cyber Unit, said. “It is not enough to write a policy requiring enhanced security measures if those requirements are not implemented or are only partially implemented, especially in the face of known attacks.” MORE