SEC Issues Risk Alert to Announce OCIE Cybersecurity Initiative

The SEC Office of Compliance Inspections and Examinations (“OCIE”) issued a Risk Alert to provide additional information regarding the Cybersecurity Initiative. The alert states that the OCIE will be conducting examinations of more than 50 registered broker-dealers and investment advisers to assess firms’ governance, identification and assessment of cybersecurity risks. Additionally, the OCIE will evaluate the security of networks and information, including risks associated with customer access to fund information, transfer requests, and working with vendors or third parties.

The OCIE’s Risk Alert includes a sample request for information and other documents used in the initiative, explaining that the initiative is designed to assess cybersecurity preparedness in the securities industry and obtain information about recent cybersecurity threats.

See also: Description of March 26, 2014 SEC Roundtable.
Related news: OCC Comptroller Curry Discusses Cybersecurity (April 17, 2014); SEC Commissioner Aguilar Gives FSOC Thumbs-Down on Mutual Funds, Discusses Cybersecurity and Reg. NMS (April 3, 2014).