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September 23, 2015

23 September 2015

Investment Adviser Charged by SEC for Failing to Adopt Proper Cybersecurity Policies

On September 22, 2015, the SEC announced that R.T. Jones Capital Equities Management, a St. Louis-based investment adviser, settled charges with the SEC for failing to establish cybersecurity policies and procedures as required by the SEC’s safeguards rule.  In July 2013, R.T. Jones was the victim of a cybersecurity breach that exposed the personally identifiable information (PII) of approximately 100,000 individuals, including firm clients.  Although the firm promptly provided notice of the breach to all affected individuals and retained cybersecurity consultants to trace the attack, the firm’s prompt response did not – according to the SEC – make up for its alleged failure to adopt written cybersecurity policies and procedures in the four years prior to the attack.

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