Colorado Proposes New Cybersecurity Rules For Financial Advisers

Earlier this month, the Colorado Division of Securities released a set of proposed changes to the Colorado securities laws that would, if adopted, impose strict cybersecurity requirements on investment advisers and broker-dealers, and require both to: (1) establish and maintain written procedures designed to ensure cybersecurity; and (2) include cybersecurity as part of their risk assessment.

If adopted, the new rules would make Colorado the second state in recent months to adopt strict cybersecurity rules relating to the financial industry. Last month, the New York Department of Financial Services imposed new cybersecurity rules on financial institutions operating in the state. Those rules did not, however, apply to investment advisers and broker-dealers.