U.S. Regulators Review Brokerage Cybersecurity, Provide Guidance

Earlier this month, the U.S. Securities and Exchange Commission ("SEC") and the Financial Industry Regulatory Authority ("FINRA") each released reports addressing cybersecurity. FINRA's report targeted its broker-dealer members, and the SEC's report targeted broker-dealers and investment advisers, but the twin reports provide a roadmap to cybersecurity for financial market participants generally, both in the US and Canada.

There can be no doubt that cybersecurity is top-of-mind for those regulating the Canadian financial market. For example, the Canadian Securities Administrators recently published CSA Staff Notice 11-326 – Cyber Security in which it stated "[s]trong and tailored cyber security measures are an important element of issuers', registrants' and regulated entities' controls in promoting the reliability of their operations and the protection of confidential information." Late last year, the Office of the Superintendent of Financial Institutions published