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Exams reveal 700 cyber-security deficiencies at state-registered firms

The North American Securities Administrators Administration recently announced that state securities regulators identified close to 700 cybersecruity deficiencies during 1,200 exams of state-registered investment advisors, Financial Advisor reports. The top deficiencies included: inadequate (or no) cybersecurity insurance; no testing for cybersecurity vulnerability; and lack of procedures around securing devices, the publication stated. See the story below. Also, a recent analysis by Eversheds Sutherland shows that restitutions ordered by FINRA are up but fines levied and disciplinary cases are down significantly for the first half of 2017, reports ThinkAdvisor. The report also identifies the top five areas for FINRA fines: Trade reporting cases, books and records cases, senior/retiree cases, mutual fund cases, and Forms U4/U5/3070 cases. Read details from the study below.

State Regulators Find 700 Cybersecurity Flaws At Advisor Firms

By Tracey Longo

Source: Financial Advisor

State securities regulators detected nearly 700 cybersecurity deficiencies during 1,200 coordinated exams of state-registered investment advisors, the North American Securities Administrators Association (NASAA) announced at its annual conference in Seattle. “Cybersecurity is a growing challenge and no investment advisor of any size can afford the loss in client trust—much less financial losses—that will result from a serious cybersecurity failure,” said Mike Rothman, NASAA president and Minnesota commissioner of commerce.


FINRA Fines Down 70% in First Half of 2017

By Melanie Waddell

Source: ThinkAdvisor

While the Financial Industry Regulatory Authority continues to zero in on abuses involving mutual fund share classes and senior financial fraud, restitutions ordered by the self-regulatory organization are way up while fines levied and the number of disciplinary cases pursued in the first half of 2017 are way down, according to a just-released analysis by Eversheds Sutherland. To compile the data, Eversheds reviewed FINRA’s monthly Disciplinary and Other FINRA Actions publications and press releases from January through June 2017.


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