Andrew W. Reich

Latest Articles

Six years after the Financial Crimes Enforcement Network (FinCEN) originally proposed its Customer Due Diligence (CDD) Rule, the deadline for financial institutions to comply draws near. Banks, broker-dealers, mutual funds and futures commission merchants and introducing brokers in commodities (“covered financial institutions”)[1] will have to start complying with the CDD Rule by May 11, 2018.[2] To comply with the primary change under the CDD Rule, covered financial institutions will now have to identify and verify…
In a series of three video programs published on the FINRA website in recent weeks, FINRA provided guidance on common deficiencies it has been seeing in its cybersecurity examinations of member firms, and recommended a number of measures to address these issues. Firms should heed these warnings both so that they are prepared for when FINRA (or SEC or state) examiners come calling and, perhaps more importantly, so that they are as protected as they reasonably…
With the recent focus by the SEC and FINRA on cybersecurity for broker-dealers and investment advisers as a backdrop, FINRA recently brought and settled an enforcement action under SEC Regulation S-P against broker-dealer Sterne, Agee & Leach, Inc. The case arose from a May 2014 incident in which a Sterne information technology employee inadvertently left an unencrypted laptop in a restroom and it was lost. The laptop is believed to have contained account numbers, names,…