Regulatory action on cyber-crime inevitable, says KPMG

From: COOConnect

It is inevitable that regulators are going to force fund managers to disclose to the authorities information as to whether they have been subject to a cyber-attack, according to KPMG.

This comes as John Carlin, assistant attorney general for national security told delegates at the SALT Conference in Las Vegas that managers need to pay increasing attention to cyber-threats and share more information with governments if hackers attempt or successfully cause disruption. The Department of Justice also warned investors their data was at risk and they could incur losses in the event of a cyber-attack. As such, managers have been urged to bolster their security measures against cyber-criminals.

“I believe it is a dead certainty that regulators everywhere are taking note of the issues around cyber-crime, particularly at asset managers. While the industry has collaborated increasingly on the issue, I think regulators are going to impose rules on reporting cyber-breaches soon. Unfortunately, I do not believe this will be done in a uniform manner but the rules will be fragmented,” said Matt White, senior manager in KPMG’s Cyber Security practice.

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