Innovation | 09.08.21
ICYMI: The Latest on Cybersecurity
The banking and financial industry has had to drastically and quickly alter security policies and practices over the course of the COVID-19 pandemic. One of the most crucial lessons learned? The ability to prevent and overcome cyber-attacks and security breaches. We've rounded up the latest Portfolio articles focused on security best practices, offerings, and insights.
"In February, the Securities and Exchange Commission’s Department of Enforcement conducted a review of independent broker-dealer Cambridge Investment Research Inc. Under scrutiny: the firm’s cybersecurity policies...The entire industry—indeed, the entire world—across all sectors, is now focused on cyber attacks, specifically ransomware attacks, in the wake of the stunning Colonial Pipeline incident that disrupted much of the East Coast's gasoline supply while providing a blueprint for how to cripple a superpower without getting out of your pajamas."
"Digital prospecting is the new normal in the bank advisory channel. Industry leaders say the trend will continue long after anything resembling normalcy returns...For organizational leaders, this transformation–doing digital, doing it better, savvier–has required decisive thinking and rapid evolution to manage new administrative, compliance, and risk management challenges. For some advisors, reinventing the role has been seamless. For others, the switch has been daunting."
"...because of the delays, and controversy surrounding crypto’s role in cyber attacks decisions, some industry members are now speculating that if there are any floodgates to open, it’ll more likely happen in 2022 or 2023."
"For some advisors, the time has arrived to at least be conversant in the various crypto investment products that are gaining in popularity, and to prepare for new ones in the pipeline. The best-known and fastest growing fund is the Grayscale Bitcoin Trust. It’s a security offering, set up solely to passively hold BTC. Structured like the share of a stock offering, the trust is incorporated in the state of Delaware and registered with the U.S. Securities and Exchange Commission."
"Advisors have one more red flag for which they are obliged to keep an eye; or, rather, a green one. Soaring interest in funds pegged to "environmental, social and governance" (ESG) considerations—also called "socially responsible," "sustainable," or "responsible" investments—has given rise to growing concerns about the possibility of misleading claims. Regulators have put the industry on notice: money managers may be prone to misleading shareholders over their products' underlying holdings, portraying them as, say, more environmentally friendly than they actually are."
Read more of the latest articles from Portfolio. Interested in submitting an article focused on cybersecurity or other industry insights? Email BISA Portfolio editors at firstname.lastname@example.org.