Prepare for a regulatory deep dive as computer-based threats grow in importance.
Broker-dealers and RIAs are becoming a bigger target than ever this year as regulators clamor to strengthen the cybersecurity practices of financial institutions. Due to its mandate of protecting investors and market integrity by overseeing securities firms, the Financial Industry Regulatory Authority (FINRA) has taken a leading role in this initiative.
The alarming truth is that many broker-dealers have failed to stay up to date with cybersecurity controls, and must swiftly get in compliance with all computer-related rules that FINRA enforces or else risk disciplinary action. The agency also operates in coordination with The Securities and Exchange Commission (SEC), as well as other federal agencies that are concerned about cybersecurity, thus our report will also touch on some of the most relevant rules from those other organizations like:
Regulatory/Disciplinary Timeline, Risk/Change Management, Cyber-security, Outsourcing, Data Governance, and How to Prepare.