Haynes and Boone, LLP Partner Kit Addleman was recently quoted in a Compliance Week article about the Securities and Exchange Commission’s (SEC’s) demanding enforcement agenda for 2019. At the top of its list: retail investors and cyber-related misconduct.
Here is an excerpt:
In another significant case, the Commission brought its first enforcement action involving charges against Altaba—the entity formerly known as Yahoo—for failing to properly inform investors about what was then the largest known cyber-intrusion in history, in which hackers stole personal data relating to at least 500 million user accounts…
From the SEC’s standpoint, advisors, broker-dealers, and public companies have an obligation to do everything on the front end to protect themselves from a cyber-attack.
“When firms do not have practices that allow for that, the SEC’s fear is that cyber-attacks and breaches will be more traumatic for those firms, for the market more generally, and for the individual investors,” says Kit Addleman, a partner at Haynes and Boone.
To read the full article, click here.