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5 Expert Recommendations for Safeguarding Data

01-23-2019, 06:20   News   

After spending most of a decade offering guidance and stern warnings, regulators are ready to put enforcement muscle behind cybersecurity rules. A flurry of activity in 2018 at federal and state levels has many legal and security experts expecting 2019 to be a watershed year for holding firms accountable for clients' digital data. Penalties are coming for advisory firms that don't do enough to prevent a data breach or don't respond to a breach effectively. The Securities and Exchange Commission is leading the charge. The agency took several actions in 2018 that should alert every adviser that any grace period in adopting data security controls has expired.

In his cover story for InvestmentNews, fintech columnist Ryan Neal provides insights from industry experts in this article: Crackdown showdown: Serious cybersecurity enforcement is coming in 2019, but are advisers ready?

cleverDome’s Chief Risk Officer Bridget Gaughan provides insights in the related slide show: Regulators' gloves are coming off with cybersecurity. Put up your dukes with these tips.

Bottom line: When clients ask what advisers are doing to protect their data, only the firms that can give a satisfying answer will build trust with investors.