SEC, Finra Continue Cybersecurity Scrutiny in 2016

As 2016 begins, the U.S. Securities and Exchange Commission and Finra have again placed cybersecurity at or near the top of their areas of emphasis, which could lead to a new round of enforcement activity, say compliance experts.“The prudence of the industry demands that cybersecurity be made a top priority, if not the No. 1 priority for financial firms in 2016,” says Michelle Jacko, CEO of San Diego-based compliance consultant Core Compliance and Legal Services. “It’s important that firms be mindful of the regulatory and the business risk that cybersecurity concerns entail.”This year, the SEC’s Office of Compliance Inspections and Examinations will look again at firms’ information security controls through testing and assessments. The announcement mirrors Finra’s guidance to brokers, which listed technology practices and cybersecurity as areas for examination in 2016.