Massachusetts, Illinois surveying RIAs about cybersecurity

William Galvin in Massachusetts and his securities regulator counterparts in Illinois are surveying state-registered investment advisers to determine their cybersecurity readiness.
JUN 13, 2014
Securities regulators in Massachusetts and Illinois are surveying state-registered investment advisers to determine their cybersecurity readiness. “We're most concerned about the privacy and protection of financial information that the brokers have on their customers,” said Tanya Solov, director at the Illinois Securities Department. The survey covers the policies and procedures firms have regarding cybersecurity, including types of authentication and hardware, encryption software, electronic backup, arrangements with third party providers, as well as costs and insurance coverage. “Many of the RIAs are smaller and we want to get their input to see what exactly they feel they have and what they might need,” said William Galvin, secretary of the Commonwealth of Massachusetts. “We want to see what kind of protections are in place and if additional protections are needed, we want to prescribe what they should be.” (See also: Finra to examine broker-dealers for cybersecurity threats) In March, the Securities and Exchange Commission convened a forum to help it better assess cybersecurity and discuss ways to protect investors and firms. Participants in a round-table discussion at the forum said investment advisers are experiencing increasing numbers of online attacks. In April, the SEC issued a risk alert, outlining potential areas it will assess in the area of cybersecurity when it conducts adviser examinations. “I certainly paid attention to what the SEC is doing. It's an issue that we're concerned about,” said Ms. Solov. “We're going to compile the surveys and look at the information we received. We do expect some guidance to advisers, potentially formal regulations. If necessary, we also expect to conduct on-site examinations.” Both Massachusetts and Illinois have set June 24 as the deadline for survey responses.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave