Cybersecurity Threats to Financial Services Industry, Investors Explored at NASAA Roundtable

WASHINGTON, D.C. (June 23, 2017) — Leading cybersecurity experts convened in Washington today at the North American Securities Administrators Association’s (NASAA) Cybersecurity Roundtable to assess current cyber threats to the financial services industry, how industry is responding to this threat, and regulatory efforts underway to help small- and mid-sized investment adviser and broker-dealer firms protect critical client information from cybercriminals.

“Cybersecurity is a growing challenge for the securities industry and for securities regulators at all levels,” said NASAA President and Minnesota Commissioner of Commerce Mike Rothman. “No securities firm or investment adviser of any size can afford the loss in client trust – much less financial losses – that will result from a serious cybersecurity failure. And no investor should have his or her personal information compromised or hard earned money stolen.”

Calling cyberattacks “one of the greatest threats globally to our financial sector,” Rothman noted that the number of data breaches in the United States reached an all-time high last year, and the financial cost of these cyberattacks on businesses continues to grow.

“There’s no question that cyberattacks are going to increase,” Rothman said. “These threats to the public mean that, as regulators, we must be vigilant. It is important that securities firms and professionals have the tools and information they need for cybersecurity. It is also essential to have the proper regulatory expectations and guidance in place for the securities industry.”

The roundtable brought together cybersecurity and information technology specialists from the Federal Bureau of Investigation, the U.S. Department of the Treasury, the U.S. Securities and Exchange Commission, state securities agencies, FINRA, and financial services industry representatives.

“NASAA believes cybersecurity, like many of the issues we face, requires a collaborative approach involving industry and regulators,” Rothman said. “We are looking at new ways to provide resources for regulators and industry members to address cybersecurity issues and we will continue to work as collaboratively as we can so that we are all better prepared against cyberattacks.”

NASAA is the oldest international organization devoted to investor protection. Its membership consists of the securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, the provinces and territories of Canada, and Mexico. 

For More Information:
Bob Webster | Director of Communications
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