News | 10.08.19
Small Advisors Struggle with Cybersecurity Demands of Regulators
In the first half of 2019, state securities regulators found cybersecurity deficiencies in 26 percent of their examinations of state-registered investment advisors, firms with no more than $100 million in assets under management, up from 23 percent in 2017, according to a report from the North American Securities Administrators Association (NASAA). The most common problems were a lack of vulnerability testing, insufficient procedures around securing devices and internet connectivity, weak passwords and having inadequate cybersecurity insurance. "Smaller companies are the low hanging fruit for cybercriminals and when you consider that more than three-fourths of the nearly 18,000 state-registered investment advisors are one- to two-person shops, it is clear how important cybersecurity should be for these small businesses as well," said Michael Pieciak, NASAA president and Vermont commissioner of financial regulation.
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