As predicted in our Connect on Tech discussion in March, the U.S. Securities and Exchange Commission (“SEC”) is ramping up its examination and enforcement focus on cybersecurity at financial institutions, including scrutiny on actual implementation and deployment of published procedures in response to discovery of cyber breach incidents. Furthermore, the SEC appears to signal its expectation that multi-factor authentication (“MFA”) for email accounts containing sensitive client and customer information should be in place.
The U.S. Securities and Exchange Commission’s Division of Examinations (Exams) recently issued a Risk Alert discussing observations from recent examinations on how investment advisers, registered investment companies, and hedge funds approach environmental, social, and governance (ESG) investing.
Under both SEC and state rules, employee political contributions can create conflicts of interest for managers that market to public pension plan clients. Both the SEC and state regulators vigorously enforce these rules during and immediately after elections.
A look into SEC Enforcement, which will create a special team to look for COVID-19 misconduct.