Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 26 APRIL 2016

SEC Brings Enforcement Action Against A Broker-Dealer For Weak Cybersecurity Controls

Akin
Akin
Contributor
Akin

Akin

Akin is a global law firm with more than 1,100 lawyers and advisors who pride themselves on...

View firm profile
Explore more from Akin

Although there was no allegation that any client suffered financial harm, the broker-dealer settled for $100,000, while the principals settled for $25,000 each.

United StatesPrivacy
Michelle Reed
Michelle Reed
Natasha Kohne
Natasha Kohne
Jenny Walters
Jenny Walters
Jo-Ellyn Sakowitz Klein
Jo-Ellyn Sakowitz Klein
Jason M. Daniel
Jason M. Daniel
Author LinkedIn connections

On April 12, 2016, the U.S. Securities and Exchange Commission ("SEC") continued its enforcement of reasonable cybersecurity controls, announcing cease and desist proceedings against a broker-dealer and two of its principals under Regulation S-P for its "failure to adopt written policies and procedures reasonably designed to ensure the security and confidentiality of customer records and information." The SEC also found the broker-dealer in violation of Section 17(a) of the Exchange Act and Rule 17a-4 thereunder for failing to "make and keep certain communication relating to its business." Although there was no allegation that any client suffered financial harm, the broker-dealer settled for $100,000, while the principals settled for $25,000 each.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

SB 54 Is In Effect: What California’s New Packaging Law Means For Your Business

Although being challenged by an injunction filed on August 20, 2026, by a coalition of 17 states, California’s SB 54 Plastic Pollution Prevention and Packaging Producer Responsibility Act is now in effect, and companies that sell, distribute, import, or ship packaged products into California should be evaluating whether they have compliance obligations.
United StatesPrivacy
Wilson Elser Moskowitz Edelman & Dicker LLP
Wilson Elser Moskowitz Edelman & Dicker LLP
Article

California's Fall 2026 Privacy Roundup: Expanded CCPA Deletion Rights And More

California Governor Gavin Newsom has signed several significant privacy bills that will reshape how businesses handle consumer data, including expanded deletion rights under the CCPA, shortened data broker response cycles, and sweeping new insurance sector privacy requirements. While one landmark bill banning the sale of sensitive personal information was vetoed, the approved legislation requires companies to update their deletion workflows...
United StatesPrivacy
McDermott Will & Schulte
McDermott Will & Schulte
Article

California’s 2026 Legislative Session Wraps: A Wave Of Privacy And AI Bills Reaches The Governor, With Key Child Safety And AI Measures Signed Into Law

California's 2026 legislative session concluded with Governor Newsom signing several landmark privacy and AI bills into law, including comprehensive child safety measures, AI auditor oversight frameworks, and expanded data protection requirements. How will these new regulations reshape digital advertising, workplace AI deployment, and online platform obligations for businesses operating in California?
United StatesPrivacy
Kelley Drye & Warren LLP
Kelley Drye & Warren LLP
Article

Eleventh Circuit Developments: Decisions On Florida And Georgia Social Media/Minor Laws And New Alabama Law

Legal risk intensifies for companies offering online interactive features to minors across Georgia, Florida, and Alabama as the Eleventh Circuit vacates preliminary injunctions against state social media laws. With Florida's HB 3 and Georgia's SB 351 now enforceable and Alabama's HB 161 set to take effect January 1, 2027, businesses face divergent compliance requirements including age verification, parental consent mechanisms, and account deletion protocols.
United StatesPrivacy
Taft, Stettinius & Hollister LLP
Taft, Stettinius & Hollister LLP
Article

Newly Enacted Law Targeting Russia Creates Novel Tariff Authority Over Third-Country Imports, While Reinforcing Existing U.S. Sanctions Framework

President Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, introducing unprecedented tariff authority that could impose duties up to 100% on goods from countries purchasing Russian energy or facilitating sanctions evasion. The legislation creates a novel framework where tariffs stack on top of existing duties while codifying Russia sanctions into statute...
GlobalInternational Law
Akin
Akin
Article

President Trump Directs Removal Of Canadian Products From Federal Procurement

On September 16, 2026, President Trump issued a presidential memorandum titled “Restoring Reciprocity in Government Procurement”, directing the Director of the Office of Management and Budget and the United States Trade Representative, in coordination with the Federal Acquisition Regulatory Council, to identify and take legally permitted steps to remove or restrict Canadian-origin items across the federal civil procurement system.
GlobalGovernment, Public Sector
Akin
Akin
Article

Major CIPA Reform Could Wipe Out Thousands Of Website Tracking Claims

California's Legislature has unanimously passed SB 690, a landmark reform that could eliminate thousands of pending class action lawsuits based on website tracking technologies under the California Invasion of Privacy Act. The bill removes the private right of action for pen register claims arising from routine web analytics tools, potentially reshaping the data privacy litigation landscape while companion bills simultaneously expand substantive privacy obligations.
United StatesPrivacy
Akin
Akin
Article

EU Finalizes Streamlined ESRS And New Voluntary Reporting Standard

The European Union’s (EU) revamped sustainability reporting framework is now final. On September 21, 2026, the revised European Sustainability Reporting Standards (ESRS) and a new Voluntary European Sustainability Reporting Standard (VS) were published in the Official Journal, marking yet another significant step toward more proportionate sustainability reporting in Europe. In addition to previously raising applicable financial thresholds triggering compliance under the Corporate Sustainability Reporting Directive (CSRD), the revised ESRS cut mandatory datapoints for in-scope companies (i.e., undertakings under CSRD) by more than 60% and total datapoints by more than 70%.
European UnionCorporate/Commercial Law
Akin
Akin
Article

Senate Unveils Bipartisan Comprehensive Permitting Reform Bill

On September 30, 2026, Senate Environment and Public Works (EPW) Committee Chair Shelley Moore Capito (R-WV), Ranking Member Sheldon Whitehouse (D-RI), Senate Energy and Natural Resources (ENR) Committee Chair Mike Lee (R-UT), and Ranking Member Martin Heinrich (D-NM) unveiled the Bipartisan American Affordability and Jobs Act of 2026 (BAAJA; S. 5653), a comprehensive permitting reform package aimed at accelerating approvals for energy, infrastructure, transmission, mining, manufacturing, and other major projects. The legislation represents the most significant bipartisan permitting reform effort in years and follows months of negotiations between Senate Republicans and Democrats.
United StatesEnergy and Natural Resources
Akin
Akin
Article

Preventing Workplace Sexual Harassment: A Transatlantic Comparison Of Employer Obligations In The US & UK

As prevention obligations expand across the UK, California, New York State, and New York City, employers face heightened duties to prevent workplace sexual harassment before it occurs. With the UK's new "all reasonable steps" standard taking effect in October 2026 and US jurisdictions lowering liability thresholds, how can multinational employers navigate these evolving transatlantic requirements?
GlobalEmployment and HR
Akin
Akin
Article

SEC Risk Alert Highlights Common Deficiencies In Investment Adviser Annual Compliance Reviews

The SEC's Division of Examinations has identified six critical areas where investment advisers commonly fall short in their annual compliance reviews, from timing failures to inadequate documentation and unimplemented corrective actions. Understanding these deficiencies is essential for advisers seeking to strengthen their compliance infrastructure and avoid examination risks.
United StatesFinance and Banking
Akin
Akin
Article

SEC Issues Guidance On Fair Value Measurement And Disclosure For Private Credit And Other Private Assets For Registrants And Others

The SEC Staff has issued new guidance addressing valuation challenges for private credit and other private assets held by public companies and registered investment companies. The statement emphasizes the need for robust valuation policies, market-based assumptions, and transparent disclosure practices as the private credit market continues to expand. Investment advisers managing private funds should carefully consider how these principles apply to their own valuation procedures and investor communications.
United StatesFinance and Banking
Akin
Akin