Privacy & Data Security

Cybersecurity is all the rage and appropriately, the SEC recently concluded its second cybersecurity exam initiative of investment advisers, broker-dealers and investment companies.

Cybersecurity seems to be all the rage with both SEC and state regulators. However, advisers have been flying blind as to what the regulators may actually request during a cybersecurity exam. Thanks to our contacts in the industry, we were able … Continued

As stated in the recent SEC Risk Alert, the 4 most frequent regulatory filing issues identified in examinations of investment advisers are as follows:

Six good safeguarding tips: Shred financial documents and other printed personal material before discarding. Do not leave your laptop computer, iPad, iPhone or Blackberry in your car (or Starbucks) unattended. Do not leave a computer you are logged on to … Continued

No one wants to be a victim of a cybersecurity attack. But if you are an investment adviser and your clients’ personally identifiable information (PII) is hacked, you will be a victim and, in the view of the regulators, you might just … Continued

With the proliferation of smart phones, iPads and table computers in the advisory business, I would suggest that all advisers probably would benefit from developing and implementing policies and procedures regarding their use. Here are some issues you should consider: … Continued

Dear Compliance Professional, On April 15, 2014, the SEC’s Office of Compliance Inspections and Examinations (OCIE) issued a Risk Alert as part of its 2014 initiative to assess Cybersecurity preparedness.  OCIE’s cybersecurity initiative is designed to assess cybersecurity preparedness in … Continued

Dear Compliance Professional, There are a few compliance actions that all investment advisers can benefit from undertaking at this time of year. Some obvious, some not so obvious. All important. So, without further ado, here is our end-of-the year checklist: … Continued

Dear Compliance Professional, In recent weeks SEC officials have been quite chatty. What differentiates these recent pronouncements from the SEC’s usual speechifying is that the recent stuff contains a trove of useful compliance insights. This Compliance Newsletter summarizes what advisers … Continued

Seven federal regulatory agencies today issued guidance to clarify that the privacy provisions of the Gramm-Leach-Bliley Act generally permit financial institutions to report suspected elder financial abuse to appropriate authorities. The Gramm-Leach-Bliley Act generally requires that a financial institution notify … Continued

Frequently Asked Questions regarding the Identity Theft Red Flags Rules have just been added to our resources page.

On April 10th, the Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) jointly approved a final rule requiring broker-dealers, mutual funds, federally registered investment advisers, and certain other regulated entities to adopt programs designed to detect … Continued

With the recent passage of the Identity Theft Red Flags Rules by the SEC (in effect, applying existing rules specifically to investment advisers), the topic of identity theft has once again moved front and center. However, whatever their obligations on … Continued

The Securities and Exchange Commission today voted unanimously to adopt rules requiring broker-dealers, mutual funds, investment advisers, and certain other entities regulated by the agency to adopt programs to detect red flags and prevent identity theft. FACT SHEET Preventing and … Continued

From the SEC’s alert: Washington, D.C., Feb. 28, 2012 – The Securities and Exchange Commission today announced a rule proposal to help protect investors from identity theft by ensuring that broker-dealers, mutual funds, and other SEC-regulated entities create programs to … Continued

Please note by March 1, 2012, advisers must ensure their agreements with third-party service providers with which they share personal information meet Massachusetts Data Privacy Act (201 CMR 17) requirements. http://www.mass.gov/ocabr/docs/idtheft/201cmr1700reg.pdf