SEC Releases Observations from Cybersecurity Examinations

14 August 2017
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Key takeaways

  • On August 7, 2017, the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) issued a Risk Alert announcing observations from its second round of cybersecurity examinations of registered broker-dealers, investment advisers, and investment companies.
  • The observations were based on OCIE’s examinations of 75 firms since September 2015, pursuant to its “Cybersecurity 2 Initiative.”
  • In general, the staff observed increased cybersecurity preparedness since its first cybersecurity initiative in 2014, but also observed areas where compliance and oversight could be improved.