The push to remote offices as a result of COVID-19 brings with it all kinds of challenges, including the need for vigilant cybersecurity, continued effectiveness with clients, staff organization and meetings, and communications. Firms would be wise to see the move to remote offices as more than a geographic challenge, but one that impacts both cybersecurity and the way they do business.
The SEC’s recent actions in regard to the coronavirus address a wide range of concerns. One of these agency measures provided relief for those working on development of the Comprehensive Audit Trail, perhaps better known as the CAT, through a temporary no-action letter for self-regulatory organizations.
Investment advisers, funds and other financial firms face a changing business and compliance dynamic as the threat of the coronavirus – and the government and other restrictions to combat it – grow. Decisions need to be made in areas such as operations, compliance, cybersecurity and more.
The new year is only a bit over one month old, but it’s already clear what the trends in cybersecurity risks through the year are likely to be. Risks tied to cloud usage, ransomware, artificial intelligence and more will make their presence increasingly felt as the year progresses. Use this article to be aware of them and ensure that your firm is doing all it can to protect itself.
The SEC regards information security as a key risk and its examiners have made it a top priority since the issue rose to prominence more than eight years ago. Now, through its Office of Compliance Inspections and Examinations, the agency has released a comprehensive list of industry practices that OCIE staff have observed. While carefully making clear that these are not required practices, the release leaves little doubt that examiners will keep these in mind when visiting registrants.
One lesson from the concerns about possible Iranian actions in the wake of the U.S. killing of General Qasem Suleimani is a cyberattack on domestic infrastructure. Investment advisers and funds, even if not the primary targets of such an attack, could be caught up in one, with potentially significant consequences for themselves and their clients. Firms, even those with cyber defenses in place, would be wise to take steps to mitigate damage from any such attack.
If anything, 2019 will be remembered as the year when Jay Clayton’s SEC tackled rulemaking head on. The Commission adopted a Standards of Conduct package designed in part to delineate the difference between investment advisers and broker-dealers, and an Exchange-Traded Funds Rule that was widely welcomed by the industry. It proposed new rules for advertising and solicitation, proxy voting advisory firms, filing exemptive applications, and most recently, expanding the definition of “accredited investor.”
Cyber breaches are never good news, but 2019 saw a huge jump in the number of companies that experienced them. The key takeaway? Take steps now to safeguard data, lest your firm becomes a cyber victim in 2020.
Inspectors General from the SEC, the CFTC, the Treasury Department and six other financial regulatory bodies recently issued a report that addresses seven management and performance challenges they face – a list that includes enhanced oversight of cybersecurity, managing and securing information technology, and sharing threat information. The report, Top Management and Performance Challenges Facing […]
Long a backer of digital innovation in the securities markets, SEC Commissioner Hester Peirce on July 30 called for the creation of a digital token safe harbor that would permit issuers to offer tokens “under an alternative regime with robust requirements.” Peirce made her pitch during a speech in Singapore at an international conference on […]