Earlier this week, the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) issued a Risk Alert providing observations derived from its “Cybersecurity Examination Initiative,” which was announced on April 15, 2014. The Risk Alert is based on OCIE’s examinations of the cybersecurity policies and practices of 57 registered broker-dealers and 49 registered investment advisers. While the Risk Alert does not provide specific guidance, it does provide fund managers with a snapshot of the cybersecurity practices of broker-dealers and investment advisers and suggests items that are of particular interest to the SEC.
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