The number of attacks arising from client-side features, such as online forms and web portals, is increasing. If your firm uses any of these tools to interact with clients, you need to start thinking about ways to protect against hackers who want to use them to gain access to your systems.

The SEC’s OCIE (Office of Compliance Inspections and Examinations) released a risk alert notice in November 2020, elaborating most frequent deficiencies and violations of the Compliance Rule under the Investment Advisers Act of 1940. The OCIE emphasized that safeguards for clients’ privacy, imposed by the Act upon the covered financial advisers, should include, among other things, a properly established and documented penetration testing program.