Friday, November 14, 2014COLUMBUS, Ohio -- Asked about their cybersecurity practices, 3% of investment advisers who responded to a state survey said they have experienced a cybersecurity incident. The survey was conducted by the Ohio Department of Commerce Division of Securities.
In addition, 62% of firms said they have performed a cybersecurity risk assessment and 44% have policies and procedures directly related to cybersecurity.
Fewer than 1% of respondents said they had experienced theft, loss, unauthorized exposure, or unauthorized use of or access to confidential information. The pilot project surveyed more than 500 Ohio-registered investment advisers with assets under management of less than $100 million.
“The Ohio Division of Securities is very concerned about cybersecurity issues, and is focused on understanding how these issues affect our registrants, the small and mid-sized investment advisers,” Andrea L. Seidt, Ohio Securities commissioner, said in a prepared statement. “While the relatively low rate of cybersecurity incidents identified in the pilot survey is encouraging, state securities regulators are aware of the increase in cyber-attacks in the financial services industry, and the importance and associated difficulties of securely maintaining private data.”
The pilot project, developed with the help of the North American Securities Administrators Association, of which the Ohio Division of Securities is a member, was designed to help regulators better understand the technology and data practices of state-registered investment advisers, how these advisers communicate with their clients and the policies and procedures these advisers maintain.
The project also focused on specific uses of technology and websites, the goal being to understand the safeguards state-registered investment advisers use to protect client information, inform state examination programs and identify national cybersecurity trends relevant to state-registered investment advisers.
SOURCE: Ohio Department of Commerce Division of Securities.
Published by The Business Journal, Youngstown, Ohio.
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