SEC prioritises cybersecurity
Thursday, 13 March 2014 12:40pm

Speculation is growing in the US that the financial regulator will impose uniform cybersecurity standards across firms operating in the financial system.

Awareness of cybersecurity as a systemic threat has risen following realisation that the financial system and Wall Street in particular is in essence just a data and transaction network.

The growing use of the internet as the hosting environment among institutions and now among consumer and the proliferation of devices to access this environment reinforces this. Forrestor research released a report last week that predicted within three years 80% of people in US will use online banking and almost half will use mobile banking.

Nevertheless there is a view that cybersecurity is an issue primarily for large firms, but the Securities and Exchange Commission (SEC) has signalled that it's equally important for small firms because every point of access to financial system network has to be protected.

However, Jane Jarcho, chief of the SEC Adviser and Investment Company Examination Program, said the SEC won't be issuing rules-based specific requirements but principles it expects market participants to follow, reported the US news service Financial Advisor.

"Small securities firms won't get a pass on cyber security rules," she said.

Cybersecurity awareness has grown as an issue following US senator Jay Rockefeller, who is chair of the Senate Commerce committee, writing to the SEC a year ago warning that "investors deserve to know whether companies are effectively addressing their cybersecurity risks - just as investors should know whether companies are managing their financial and operational risks".

John Mutch, CEO of BeyondTrust, a security and compliance solutions specialist, wrote in Forbes magazine that cybersecurity requires an 'all or nothing' approach.

Manual processes are also no defence, he said, because they are too ad hoc and risk prone. The irony is that automated process can be systemically protected, unstructured ad hoc processes can't be easily safe guarded, he explained.

Follow the industry experts.
Christopher Page
Christopher Page
Managing Director

The age of SMSFs
The growth of the number and volume of self-managed super funds (SMSFs) seems to have no end. As the sector reaches the one million more
Benjamin Ong
Benjamin Ong
Chief Economist

Reflation, rotation and the taper
'Tis being my final type (drivel, to some gentle readers) for the year, we'll take a look back at the 2013 that was to seek the lessons ... read more
Alex Dunnin
Alex Dunnin
Director of Research & Editorial Services

BRUMBIE: Walk quietly but carry a big stick
It's now a few weeks since Financial System Inquiry (FSI) chief David Murray handed down his interim report and already sectional advance ... read more
News Search   
VideoBrought to you by
Platinum Asset Management
Reflecting on more than three decades in the industry, Platinum Asset Management managing director Kerr Neilson says one of the changes in the industry has the been the erosion of the information advantage ... Watch video
MAX 2014 Highlights
The annual MAX forum places all the movers and shakers in financial services when it comes to sales, marketing and distribution. Find out the recipe of those who are taking the lead. Watch the video n ... Watch video
AMP Capital Australian Equity Concentrated Fund
We invite you to watch our latest video program on FSiTV featuring AMP Capital's Co-Head of Australian Fundamental Equities Gian Pandit, as interviewed by Mark Smith, deputy editor of Financial Standard. In ... Watch video
Who wants to be a RockStar 2014 Highlights
Count's Chris Mekhail was crowned 2014 Rockstar this year for his soaring rendition of Swedish House Mafia hit 'Don't You Worry Child' at the annual Who wants to be a RockStar event organised by the Finance ... Watch video
Get it
FREE to your inbox, get the Financial Standard Daily Email.
Get the Free
iPad app
Download the Financial Standard iPad app for FREE
Risk and Liquidity Forum
Liability Driven Investing Forum
Major Market Players Symposium
Investment Performance Measurement, Attribution & Risk Management
Family Office Forum

$245 (inc GST) for 1 year
Copyright © 1992-2014 Rainmaker Group
All material on this site is subject to copyright. All rights reserved. No part of this material may be reproduced, translated, transmitted, framed or stored in a retrieval system for public or private use without the written permission of the publisher.
Link to something Od4Zlz2m