Compliance and Regulatory Services (“CARS”) Hot Topics
In this publication, the experts of EisnerAmper CARS will comment on two very important current issues: cybersecurity and the SEC hiring for 300 new positions in OCIE and Enforcement.
Cybersecurity Is an Ever-Growing Area of Concern
After the SEC conducted a cybersecurity sweep examination of broker-dealers and registered investment advisors, the findings were that many firms have addressed cyber risk but still require improvement in the design of their cybersecurity framework, including infrastructure and controls to reasonably ensure client data is not at risk. We are seeing many requests from registered advisors and broker-dealers for assistance in developing or remediating their cybersecurity programs in accordance with various SEC pronouncements and recommendations and adopting a cybersecurity program that meets the standards outlined in the National Institute of Standards and Technology whitepaper, "Framework for Improving Critical Infrastructure Cybersecurity."
SEC Hiring for Enforcement Positions
The SEC recently announced that it will be hiring for 300 new positions for its Office of Compliance Inspections and Examinations and Division of Enforcement. We believe this action speaks for itself. The SEC is expanding its reach into all corners of registered investment advisor and broker/dealer operations and arming itself with additional resources to ensure compliance with its initiatives through its examination program and enforcement attorneys.
Recent Pronouncements, Announcements, Release and Speeches
Below, for your convenience, we've aggregated recent postings from the SEC and FINRA.