Brokerage Firms Warned About Cybersecurity Threats

According to a recent InvestmentNews article, the Treasury Department called for state and federal officials to team up and coordinate examinations with regard to financial regulatory reform. The report, out on June 12th states, “In cybersecurity, financial institutions share the same goal as regulatory agencies: maintaining the safety and soundness of the financial system by mitigating and protecting financial institutions and the sector from cybersecurity risks. Better coordination on cybersecurity regulation is needed to achieve this goal and enhance the resiliency of the sector. Given the risk of fragmentation and overlap, Treasury recommends that federal and state financial regulatory agencies establish processes for coordinating regulatory tools and examinations across sub-sectors.” Currently, firms answer to four regulators when it comes to cybersecurity: the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Office of the Comptroller of the Currency and the Federal Reserve. The regulatory bodies allegedly do not coordinate or communicate with each other on cybersecurity matters, which can cause problems within the industry. You may be able to sue your brokerage firm for security lapses. To find out how, please call our Chicago-based securities law firm today for a no-cost, no-obligation consultation with one of our attorneys. We take cases on a contingency fee basis only and sue firms in the FINRA arbitration forum.