Member Article

As cyber threats and news of data breaches make headlines, the Securities Exchange Commission (the “Commission”) has increased its expectations for investment advisers, broker-dealers, and funds to protect client information from hackers. On September 22, 2015, the Commission brought its first cybersecurity enforcement action against an investment adviser, sending a message to regulated entities. R.T. Jones Capital Equities Management, a St. Louis-based investment adviser, agreed to settle charges that it failed to establish cybersecurity policies and procedures in advance of a data breach affecting a web server containing personal information. With this enforcement action and a new round of examinations on cybersecurity preparedness, the Commission joins a crowded ensemble of government agencies enforcing cybersecurity in the industries they regulate.

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