Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:One of Fundsters' Biggest Fears Came True, But How Much? Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, September 21, 2017

One of Fundsters' Biggest Fears Came True, But How Much?

News summary by MFWire's editors

One of fundsters' biggest fears came true last summer. Yet it's not clear what effect, if any, this will have on asset managers, mutual funds, or investors.

Yesterday, in a statement on cybersecurity, SEC Chairman Jay Clayton revealed that last year there was an intrusion into the regulatory agency's EDGAR test filing system. He says that last month the agency figured out that the hack "may have provided the basis for illicit gain through trading." Clayton assures the public that the software vulnerability in the test filing system "was patched promptly after discovery."

The New York Times and the Wall Street Journal both covered Clayton's revelation.

Investment companies (the official term, under federal law, for mutual funds) are among the many filers who use the EDGAR system. Clayton provides no details as to what or whose information was (or might have been) accessed, other than that it was nonpublic and that SEC staff think the hack "did not result in unauthorized access to personally identifiable information, jeopardize the operations of the Commission, or result in systemic risk." Yet he does confirm that the investigation is ongoing.

If Clayton's remarks spark a public debate over cybersecurity issues at the SEC, it won't be the first time. Back in 2012 a fired SEC employee attacked the agency on a host of fronts, including via accusations of cybersecurity vulnerabilities connected to the SEC and the stock market. And as recently as March, mutual fund industry legal eagles and other insiders polled at an industry conference pointed to cybersecurity at the SEC, specifically around its new liquidity and disclosure rules for funds, as a big worry. In fact, 61 percent of the attendees polled, more than for any other issue, labeled such worries as one of the threats they are most concerned with, and another 34 percent labeled it an elevated threat.

On the flip side, Clayton's predecessor, Mary Jo White, often talked about cybersecurity, calling it "the biggest systemic risk" facing fundsters and the rest of the financial sector. 

Edited by: Neil Anderson, Managing Editor


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use