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The SEC recently issued an investor bulletin regarding one of our favorite topics; data security of customer accounts. The primary areas of the SEC’s focus were:

  1. Have a strong password, keep it secure and change it often.
  2. Use a two-step verification process if the firm offers it.
  3. Use different passwords for different on-line accounts.
  4. Avoid

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Since Al Gore invented the internet, we have had an unprecedented amount of information and data right at our fingertips.  However, given the immeasurable quantity of this information, it has always been a challenge to quickly and efficiently gather intel and perform research on the internet, especially in the context of a securities practice.  While…

A recent Investment News article highlighted the pervasive problem associated with cyberattacks and offered some guidance in the event of an attack. Before visiting that guidance, understand how pervasive these attacks are.

The SEC recently conducted a sweep on cyberattacks. This sweep revealed that 88% of broker-dealers and 74% of advisors have experienced some form…

The SEC and FINRA have continued to designate cybersecurity as an exam priority.  Both the SEC and FINRA have also recently published the findings of their exam sweeps.  As reported by the Investment News, the results of those sweeps when it comes to cybersecurity are telling.

The sweeps show that firms, much like with…

FINRA recently sanction a registered representative for tweets made some time ago.  The offending tweets referenced a stock that he did not disclose that he owned and were otherwise biased and not backed up by facts. 

The registered representative was fined $15,000 and given a ten day suspension.  In the larger scheme of things, a …

As firm clients demand more and more access to their registered representatives, member firms must do more to make sure that their brokers do not run afoul of the firm communication written supervisory procedures.  One firm recently failed that test, resulting in a FINRA fine and censure. 

In that matter, FINRA found that the member …

The SEC recently issued two interpretations that address your use of interactive social media, like Twitter, in accordance with the securities laws.   These interpretations permit your firm to now use a hyperlink to satisfy the legend requirements and, at the same time, limit your responsibility where your communications are retransmitted, like a retweet. 

The major …

The SEC announced that it will not pursue an enforcement action against a company CEO for violating Regulation FD when he announced on his personal Facebook page certain information.  The SEC noted that neither the CEO nor the company had previously used the Facebook page to announce company information or had they informed shareholders that…

The Financial Industry Regulatory Authority announced that it sent targeted examination letters asking broker-dealer members about their social media use.  See http://www.finra.org/Industry/Regulation/Guidance/TargetedExaminationLetters/P282569.

In the letter, FINRA warned that each member firm’s written and electronic communications are subject to periodic spot checks.  Among other questions, FINRA asked the member firms to explain their use of social…