A small action by the SEC, but one that adds to the pool of precedence.

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A small action by the SEC, but one that adds to the pool of precedence. As it charges both JP Morgan, UBS and Tool station with failures of their identity theft programs under regulation S-ID. A minor financial infraction, charging them $1.2M, $925K and $425K respectively. But an example of SEC oversight of data protection.

Regulation S-ID requires financial institutions, including broker-dealers and investment advisers registered with the Commission that offer or maintain one or more covered accounts, to develop and implement a written identity theft prevention program that is designed to detect, prevent, and mitigate identity theft” in connection with the opening of a covered account or any existing covered account. The program must be appropriate to the size and complexity of the financial institution…and the nature and scope of its activities.”

Todays actions are reminders that broker-dealers and investment advisers must design and operate identity theft prevention programs that are appropriately tailored to their businesses and update them in response to the increased threat and changing nature of identity theft. SEC quote.

Ted Dziekanowski

#cybersecurity #cyberriskmanagement #regulation #securitiesandexchangecommission

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