FINRA Fines Independent Broker-Dealers Over Cybersecurity Lapses

Posted on April 22nd, 2024 at 11:31 AM
FINRA Fines Independent Broker-Dealers Over Cybersecurity Lapses

From the desk of Jim Eccleston at Eccleston Law

The Financial Industry Regulatory Authority (FINRA) has imposed fines and censured independent broker-dealers Osaic Wealth and Securities America for cybersecurity deficiencies that led to hackers accessing the private information of more than 32,000 customers.

Osaic, formerly Royal Alliance Associates, and Securities America agreed to pay fines of $150,000 each for failing to establish and maintain adequate written supervisory procedures to safeguard client records and information, as outlined in a settlement letter known as an Acceptance, Waiver and Consent (“AWC”).

AdvisorHub reports that from January 2021 to March 2023, unauthorized third parties could access sensitive information, including social security numbers, bank account details, and driver's license information, affecting approximately 28,000 customers of Osaic and 4,640 clients of Securities America.

FINRA examiners previously had alerted both firms about deficiencies in their cybersecurity controls at branch offices before the breaches occurred. Although the broker-dealers self-reported the incidents to FINRA, they accepted the penalties without admitting or denying the allegations, according to the AWC.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next

You are the best attorneys in the country.

CC

LATEST NEWS AND ARTICLES

November 26, 2025
Former GWG Chair Charged in Alleged $150 Million Fraud Scheme as Investor Losses Mount

Federal prosecutors have intensified scrutiny of the long-running collapse of GWG Holdings Inc., unveiling criminal charges against Bradley Heppner, the former chair of both GWG and Beneficient.

November 25, 2025
Financial Advisor Accepts FINRA Bar Amidst Investigation into Alleged Misappropriation

A financial advisor affiliated with a credit union connected to Raymond James Financial agreed to an industry bar after declining to cooperate with FINRA’s investigation into allegations that he misappropriated client funds.

November 24, 2025
Kyle Busch Alleges Considerable Losses in Indexed Universal Life (IUL) Scheme

Kyle Busch, a two-time NASCAR Cup Series champion, and his wife Samantha announced that they lost more than $8.6 million in what they describe as a “devastating financial scheme” involving an Indexed Universal Life (IUL) insurance policy.