On August 30, 2021, the Securities and Exchange Commission (SEC) announced enforcement actions against three sets of broker-dealer and/or investment advisers for alleged failures in the entities’ cybersecurity policies and procedures with respect to email account compromises and the exposure of customer information in violation of Regulation S-P, known as the Safeguards Rule.
In a recent legal update, “US SEC announces three actions charging firms for cybersecurity deficiencies,” Kevin Harnisch, Chris Cwalina, Will Daugherty, Ashley Zatloukal and Matthew Niss discuss the SEC’s enforcement actions and provide further information on the Safeguards Rule.