On July 27, 2022, the Securities and Exchange Commission (SEC) separately settled three enforcement actions with broker-dealers and investment advisers for alleged deficiencies relating to the prevention of customer identity theft, in violation of the SEC’s Identity Theft Red Flags Rule, or Regulation S-ID. Regulation S-ID requires registered financial institutions, broker dealers, and investment advisers […]
Securities and Exchange Commission
Swiss Data Protection Regulator Is Latest to Outline Framework for Transferring Data to the SEC
Entities registered with the U.S. Securities & Exchange Commission (SEC) must maintain certain books and records and can be subject to the SEC’s examination, inspection, and enforcement authority. Responding to SEC requests can require cross-border transfers of personal data, and this has historically risked non-compliance under foreign data protection law. The SEC has been proactive […]
Critical Audit Matters Disclosure Implicates Information Technology and Security
As independent auditors to public companies and business development companies begin to make required disclosure of Critical Audit Matters (CAMs) to the audit committee, such reports are beginning to include discussion of information security programs and information technology controls. Independent auditors have treated material weaknesses in certain information technology controls as material weaknesses in internal […]
SEC Files Complaint Against Hacker, Traders in EDGAR Data Breach Case
The Securities and Exchange Commission has filed a Complaint against eight traders, one alleged hacker, and others, in connection with a previously disclosed cybersecurity attack that infiltrated the SEC’s EDGAR system in 2016. The Complaint brings claims for violations of federal securities and antifraud laws and unjust enrichment, and seeks injunctions against future securities law […]
SEC Investigative Report Cautions Public Companies to Consider Cyber Threats When Implementing Internal Accounting Controls
The Securities and Exchange Commission issued an investigative report last week cautioning public companies to consider cyber incidents and threats when implementing internal accounting controls. The report details the SEC Enforcement Division’s investigations of nine public companies that were victims of cyber-related fraud schemes to determine whether the companies may have violated the federal securities […]