New Rules, Proposed Rules, Guidance and Alerts –

GUIDANCE AND ALERTS –

OCIE Risk Alert Highlights Risks Associated with Adviser and Broker-Dealer Use of Cloud-Based Storage of Customer Records -

On May 23, 2019, the SEC’s Office of Compliance Inspections and Examinations (OCIE) published a risk alert identifying certain security risks associated with cloud-based and other network storage solutions used by investment advisers and broker-dealers for storing electronic customer records and information. OCIE’s latest risk alert is intended to encourage firms to (1) review their practices, policies and procedures for storing electronic customer information and determine whether improvements are necessary; and (2) actively monitor vendors used for network storage to assess whether the services provided are sufficient to enable the firm to satisfy its regulatory obligations.