Cybersecurity is a high-risk point of discussion within the financial services sector. Cyberattacks can occur in various ways including: accidental events, deliberate insider attacks, third-party hacks perpetrated using a combination of strategies, such as malware, ransomware, phishing and spear phishing, and stolen access credentials, among others. Defense against cyberattacks is imperative to your business.
While the SEC’s Office of Compliance Inspections and Examinations suggests that FINRA’s membership implement fundamental Cybersecurity procedures, FINRA continues to report that Cybersecurity remains a top compliance risk to broker-dealers. SDDco Group firmly believes that Cybersecurity measures will remain a focus for FINRA moving forward. Although FINRA’s Cybersecurity guidelines have only been advisory, they are progressively becoming more detailed and demanding, which suggests that an implementation of strict rules may be on the horizon.