Data Security In The Financial Industry: Five Key Developments To Keep An Eye On In 2016

According to a 2015 report on threats to the financial services sector, 41% of financial services organizations polled had experienced a data breach or failed a compliance audit in the previous year, and 57% listed preventing a data breach as their top IT priority.  Reflecting the ever-increasing awareness of threats to financial data security, 2015 also saw a number of regulatory enforcement actions and legislative efforts directed at financial institutions.  Below we outline some of the most significant developments of the past year.

1. SEC Enforcement Action

In September 2015, the SEC reached a settlement with a St. Louis-based investment adviser on charges that it failed to establish required cybersecurity policies and procedures in advance of a breach affecting the personally identifiable information ("PII") of 100,000 individuals.