Cybersecurity has become one of the biggest risks facing the financial services industry, and there have been extensive guidance and initiatives from US banking regulators to help ensure the safety of the institutions and the banking system. Some of the more recent regulatory requirements and other developments will have a significant impact on nonbank financial services companies, such as mortgage lenders, brokers and servicers, and other consumer financial services companies. For example, the Federal Trade Commission (FTC) has revised its Standards for Safeguarding Customer Information (FTC Safeguards Rule), and the New York Department of Financial Services (NYDFS) has issued proposed changes to its cybersecurity regulation. These two recent developments will require many nonbank financial services companies to enhance their existing cybersecurity programs to meet these heightened security standards.
