Cyber Security Investment Adviser

This guidance update is the latest instance of the sec s increased emphasis on cybersecurity as a priority for advisers.

Cyber security investment adviser. This cybersecurity post is a monster and meant to be a reference for financial advisors looking to build out a robust cybersecurity advisor solution. On april 28 the securities and exchange commission sec released a guidance update addressing the importance of cybersecurity and the steps registered investment advisers and registered investment companies may wish to consider in light of growing cybersecurity risks. Securities and exchange commission s sec office of compliance inspections and examinations ocie indicated that technology would be one of the most significant initiatives in 2014. The agency also keeps a watchful eye over market participants including by making cybersecurity a priority of its national exam program.

The frameworks and manuals for advisors are readily available and simple tools can empower any advisory to implement and document their cyber program. Examined 75 firms including broker dealers investment advisers and investment companies funds registered with the sec to assess industry practices and legal and compliance issues associated with cybersecurity. That said if you want to build your own financial advisor cybersecurity program that aligns to sec cybersecurity requirements this is a great resource. We engage a myriad of service providers in the construction and maintenance of a holistic defense in depth cybersecurtity program.

This focus on technology will include an assessment on an investment adviser s cybersecurity preparedness. Observations from investment adviser examinations relating to electronic messaging social media. The survey was designed to better understand the cybersecurity practices of state registered investment advisers which account for more than half of the registered investment advisers conducting business in the united states. Nasaa s compilation of results from a pilot survey about cybersecurity practices of small and mid sized investment adviser firms.

Patrick cleary chief operations officer at alpha architect an asset management firm that delivers affordable active exposures for tax sensitive investors patrick is responsible for all aspects of compliance cybersecurity and firm operations. If blog posts were food this would be a steaming pile of kale. Cyber risks and the sec s related focus are particularly relevant for mutual funds hedge funds and private equity managers. Granted cybersecurity requires investments.

The growing number and complexity of cybersecurity risks facing investment advisers ias has triggered an increased interest in cyber risk management by the united states securities and exchange commission sec. Investment adviser use of social media as with all regulatory matters if you re not sure which cybersecurity regulations apply to your ria firm consult with a qualified compliance attorney or compliance consultant. In its examination priorities for 2014 notice the u s.