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SEC charges broker-dealers, investment advisors over cybersecurity failures

Published 08/30/2021, 01:16 PM
Updated 08/30/2021, 01:21 PM
© Reuters. FILE PHOTO: The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C., U.S., May 12, 2021. REUTERS/Andrew Kelly/File Photo/File Photo/File Photo

(Reuters) - Units of three broker-dealer and investment advisory firms agreed to pay hundreds of thousands of dollars in penalties to settle charges from the U.S. Securities and Exchange Commission (SEC) over cybersecurity failures, the regulator said on Monday.

The SEC charged KMS Financial Services, five units of financial firm Cetera, and two units of Cambridge Investment Research for failures to adopt and implement cybersecurity policies and procedures that resulted in email account takeovers exposing the personal information of thousands of customers and clients at each firm.

© Reuters. FILE PHOTO: The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C., U.S., May 12, 2021. REUTERS/Andrew Kelly/File Photo/File Photo/File Photo

Cetera, Cambridge and KMS did not respond immediately to requests for comment. None of the firms admitted to or denied the findings, the SEC said in a statement.

The Cetera entities agreed to pay $300,000, Cambridge agreed to pay $250,000 and KMS will pay $200,000, the SEC said.

Latest comments

Incompetent SEC: They should include the true cost of the damage in their report and make penalties 150% of damages. Nothing else teaches a lesson
Another government shakedown
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