Nebraska Securities Bureau Proposes New Cybersecurity Rule for Investment Advisers

August 14, 2019

The Securities Bureau of the Nebraska Department of Banking and Finance has proposed a new rule which would require investment advisers to develop and maintain physical and cybersecurity policies and procedures designed to protect client records and information.

The proposed rule by Nebraska securities regulator would require a state registered investment adviser in Nebraska to develop an understanding of the firm’s security risks, develop safeguards to adequately protect its clients’ information, be able to detect and identify the occurrence of an information security incident/breach, develop plans for responses to information security incident/breach, and maintain plans for restoring services/capabilities that were damaged by the information security incident/breach. A state registered investment adviser in Nebraska would also be required to review these policies and procedures on at least an annual basis and deliver privacy policy statements to its clients.

The Securities Bureau of the Nebraska Department of Banking and Finance will be holding a public hearing on the new rule proposal on August 19, 2019. The proposed new rule is available here: https://www.nebraska.gov/nesos/rules-and-regs/regtrack/proposals/1990.pdf

RIA Compliance Consultants is available to assist your investment adviser firm with developing and maintaining policies and procedures to address physical and cybersecurity issues as it relates to your investment adviser firm.  Additionally, we are also able to assist you with drafting of a privacy policy which can be delivered to your clients. To learn more about our services, please call us at 877-345-4034 or visit our website here.

Posted by Grant Parr
Labels: Cyber Security, Cybersecurity, Nebraska