In June, the SEC settled charges against a registered broker dealer/investment adviser for failing to adopt written policies and procedures reasonably designed to protect customer records and information. The company had stored customers' personally identifiable information on two applications, and one of the company's employees had misappropriated and stored this information on a personal server, which was later hacked. The SEC alleged that the company violated the Safeguards Rule because it failed to ensure the reasonable design and proper operation of its policies and procedures for safeguarding confidential customer data.
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