From: ThinkAdvisor
Lawyers predict cybersecurity will continue to be a ‘hot’ regulatory issue
By Melanie Waddell, ThinkAdvisor Washington Bureau Chief Investment Advisor Magazine
Broker-dealers and advisors should brace for “cybersecurity regulation or guidance” from the Securities and Exchange Commission “in the near future,” and expect that future cybersecurity enforcement actions could result in “significant” fines, says the law firm Sutherland Asbill & Brennan.
In a Tuesday legal alert titled “Cybersecurity Issues in the Financial Services Industry: Fasten your cyber belts, it’s going to be a bumpy night,” Sutherland notes that the recently launched exams by the SEC and FINRA of broker-dealers’ and advisors’ cybersecurity policies are assessing many of the same issues addressed in previous enforcement actions brought by both regulators against firms for cybersecurity-related failures.
Sutherland tells BDs and advisors to brush up on the areas that both regulators are focusing on in their cybersecurity “sweeps,” details previous cybersecurity-related infractions detected by both regulators, and predicts a more aggressive cybersecurity regulatory environment ahead.
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