SEC Commish Calls for Stricter Cybersecurity Standards for FAs
SEC Democratic Commissioner Kara Stein believes broker-dealers and investment advisors need to be held to higher standards when it comes to cybersecurity, according to ThinkAdvisor.
Cybercrime is expected to cost businesses $8 trillion over the next five years, according to World Economic Forum data cited by the publication. Regulators are well aware of the threat, and in 2014 the SEC passed Regulation Systems Compliance and Integrity, or Regulation SCI for short, requiring some market participants such as clearing firms and exchanges to have written policies and procedures demonstrating they’re prepared to handle a cyberattack, ThinkAdvisor writes.
But that regulation should have included broker-dealers, investment advisors and transfer agents, Stein said in a recent speech, according to the publication.
Now, she’s calling on SEC Chairman Jay Clayton to prioritize what she’s calling “Regulation SCI 2.0” to address that omission, ThinkAdvisor writes.
“All need to up their game to protect our critical systems, personal data and economy from cyber threats,” Stein said, according to the publication. “Tepid responses from government and businesses are invitations that cybercriminals simply cannot ignore.”