SIFMA Unveils Cyber Securities Tips

Posted on July 3rd, 2015 at 11:19 AM
SIFMA Unveils Cyber Securities Tips

From the Desk of Jim Eccleston at Eccleston Law LLC:

A single security breach can have detrimental effects on a small advisory firm. Small firms often face more difficulty as they lack resources or technical expertise to implement a sound defense system. Luckily, government and industry officials have developed resources to help them get started. SIFMA has detailed a list of tips such as password tips, managing administrative privileges, and regularly backing up data.

While implementing cyber security measures are tedious, the changing culture of security demands that brokers and advisors take action to protect their clients’ sensitive information. Whether or not it seems necessary, FINRA and the SEC are making sure that those new threats are addressed and remedied across the industry.

More and more third-party security vendors are being used to outsource security oversight. But FINRA warns that it is important to make changes internally as well. If using a third-party vendor, it is important to maintain a designated role-person inside the office to provide supervision and training. The training is just as important as supervision. As an example, informing the workforce that “123456” is not an acceptable password can make or break a hacker’s ability to access your server.

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: Eccleston Law LLC, James Eccleston, eccleston, Eccleston Law, SIFMA, FINRA

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Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.


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