Cybersecurity Compliance and Regulatory Initiatives

This document is a report detailing the ongoing efforts by the SEC and FINRA to enhance cybersecurity measures among regulated firms. It outlines the SEC’s Office of Compliance Inspections and Examinations (OCIE) emphasis on information security technology as part of its examination priorities for 2014. The report notes significant actions taken by the SEC, including a Cybersecurity Roundtable led by SEC Chairman Mary Jo White, which highlighted the importance of cybersecurity for broker-dealers. Additionally, the OCIE issued a risk alert announcing targeted cybersecurity exams for over 50 broker-dealers and investment advisers, providing a sample information request to aid compliance professionals. FINRA's regulatory priorities for 2014 also prominently featured cybersecurity, with targeted examination letters sent to assess firms' cybersecurity threat management. The report concludes by recommending that firms form cross-functional teams to address cybersecurity issues, utilizing the OCIE Risk Alert Appendix as a guide.