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

Return to Archive



As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.


February 22, 2024
Key Considerations for Advisors When Assessing the Financial Soundness of Annuities

While rating agencies like Fitch and S&P Global Ratings generally highlight the strength of annuity issuers, advisors still should scrutinize certain factors in their assessment process.

February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.

February 20, 2024
Challenges Persist: Firms Struggle to Comply with Regulation Best Interest

FINRA's annual report for 2024 reveals a concerning trend among broker-dealers, with numerous instances of violations of Regulation Best Interest (Reg BI).