The SEC announces cyber related actions against eight firms for failures in their cybersecurity policies and procedures.

← Back to Blog

The SEC announces cyber related actions against eight firms for failures in their cybersecurity policies and procedures. That resulted in email account takeovers, exposing the personal information of customers and clients between 2017 and 2021.

In my view what is of interest with these actions is that they focus on two issues. Firstly the issue of a failure by the companies involved to protect client data in-line with corporate policies and procedures. Secondly, what the SEC sees as the misleading reporting of the cyber incidents to their clients.

Whilst the fines are relatively small, they continue to set precedent by the SEC for oversight and assurance of cyber incidents of their covered entities. The SEC is increasing its capabilities to oversight and assure cyber, under its very clear remit of investor protection.

SEC quote
Investment advisers and broker dealers must fulfil their obligations concerning the protection of customer information,……….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.

Lets not forget that the SEC is the regulator of the worlds largest capital markets by a very big margin. When the SEC sets the ‘mood music’ it is probably advisable to consider the risk of ignoring the tune. If ESG formally incorporates cyber as is highly likely, then the focus on cyber-risk management as a requirement for access to capitals may focus executive teams. The fines for failure to comply are sure to.

Ted Dziekanowski‚ Jason Spezzano‚ Brian McCarthy

#theaugustagroup‚ #theaugustaplan‚ #cybersecurity‚ #supplychainriskmanagement‚ #cyberriskmanagement‚ #compliance‚ #cyberinsurance‚ #insurance‚ #regulatorycompliance‚ #regulatoryoversight‚ #esgrisk‚ #cyberregulation‚ #esgreporting‚ #soc2‚ #defenceindustry‚ #esg‚ #defence #securitiesandexchangecommission #capitalmarkets

View Original Post
https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6838445591857516544