Investment Adviser Charged By SEC For Failing To Adopt Proper Cybersecurity Polices And Procedures

Tuesday, September 22, 2015 16:03
edit
Investment Adviser Charged By SEC For Failing To Adopt Proper Cybersecurity Polices And Procedures

Tags: cyber security | cybersecurity | fines | sec | securities and exchange

 On September 22, 2015 the SEC announced that a St. Louis-based investment adviser has agreed to settle charges that it failed to establish the required cybersecurity policies and procedures in advance of a breach.

 

This Website Is For Financial Professionals Only


The breach this adviser experienced compromised the personally identifiable information of about 100,000 individuals, which included thousands of the firm’s clients.

The “safeguard rule” enforced by the federal securities require that all registered investment advisers have written policies and procedures designed to protect their client’s records and information.  This “safeguard rule” was broken by R.T. Jones Capital Equities Management.  For nearly four-years this firm failed to have any written policies and procedures to ensure the security and confidentiality of their client’s information.

$75,000 is the fine being imposed by the SEC.  But the loss of trust that this firm's clients will have in them will cost them more than this fine.

To read more:

http://www.sec.gov/news/pressrelease/2015-202.html

Comments (0)

Write comment

You must be logged in to post a comment. Please register if you do not have an account yet.

busy