Cybersecurity – Important Considerations for IAs and BDs

May 2014


Both the Securities and Exchange Commission (“SEC”) and the Financial Industry Regulatory Authority (“FINRA”) have announced that they are conducting exams focused on the strength of financial firms’ “cybersecurity.”1 FINRA is examining member broker-dealers, with the following four main goals in mind: (i) to understand better the types of threats that such firms face; (ii) to increase their understanding of firms’ risk appetite, exposure and major areas of vulnerabilities in their IT systems; (iii) to appreciate better firms’ approaches to managing cyber threats, including through risk assessment processes, IT protocols, application management practices and supervision; and (iv) as appropriate, to share observations and findings with firms.2


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