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Securities Compliance Sentinel Analysis of cutting-edge securities industry issues

FINRA “Sweeping” Firms for Cyber-Security

Posted in Cyber-Security, Financial Industry Trends, FINRA Compliance

We keep saying it, and we will keep saying it, cyber-security issues will not go away.

Now, FINRA has notified its member firms that it will begin assessment examinations regarding controls, procedures, approaches and management of cyber-security threats.  See http://www.finra.org/Industry/Regulation/Guidance/TargetedExaminationLetters/P443219.  In particular, FINRA examiners will review business continuity plans, service provider arrangements, other third party vendor agreements, reporting lines, cyber-attacks and responses, training, and insurance.  FINRA will use this information to assess its member firms potential response to these issus as well as their infrastructure.

Seriously, member firms need to take this risk seriously and ensure that core systems are protected.