The financial industries are being increasingly targeted by cyber thieves. This paper focuses on the latest cybersecurity requirements for financial institutions with brokers-dealers, investment advisors, and investment funds that are regulated by Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).
The Financial Industry Regulatory Authority (FINRA) is a self-regulatory non-governmental organization that regulates member brokerage firms and exchange markets. FINRA’s primary mission is to protect investors. FINRA will utilize both examinations and targeted investigations to evaluate the adequacy of firm policies and information technology systems to protect sensitive investor information.
FINRA’s stated goal of protecting investors contributes to a continued focus on cybersecurity and data integrity. FINRA has noted that the increased frequency and sophistication of cyberattacks against the industry is a persistent and ever-changing threat. FINRA’s focus on cybersecurity is also driven by the sensitivity of investor data in financial transactions. FINRA has committed to diligently monitor the information security policies and procedures of member firms. The industry’s heavy reliance on computer-based client information and financial systems make it clear that this aspect of business conduct needs to be closely monitored.
Through examinations and targeted investigations, FINRA will target any firm whose information security and customer data …