SEC includes Cybersecurity among its 2019 examination priorities
The Securities and Exchange Commission's Office of Compliance Inspections and Examinations (OCIE) has announced its 2019 examination priorities which is publicly released to provide insight into the areas it believes may present heightened risk to investors or the U.S. capital markets. Included among the areas of focus for 2019 are digital asset markets and cybersecurity. According to the SEC, its examinations will focus on following:
“… proper configuration of network storage devices, information security governance generally, and policies and procedures related to retail trading information security. Specific to investment advisers, OCIE will emphasize cybersecurity practices at investment advisers with multiple branch offices, including those that have recently merged with other investment advisers, and continue to focus on, among other areas, governance and risk assessment, access rights and controls, data loss prevention, vendor management, training, and incident response.”
We are seeing increased scrutiny on technology by regulators as the overlap of cybersecurity risks with business risks forces regulatory bodies to take deeper interest in assessing the impact of technology on financial markets.
