Security Measures Advisors Should Use to Protect Client Information
Mike Pedlow, executive vice president and chief compliance officer at Austin, Texas-based Kestra Financial, says financial companies should anticipate specific measures to attract regulatory attention. Those include "multifactor authentication, which verifies someone's identity by sending a code via text message before allowing access to sensitive information," he says. Other items on the regulator's radar include encryption of emails and data files. "This keeps your clients' private information secure, even if there is a breach," says Pedlow, whose firm provides technology and consulting services to financial advisors. He also says regulators are looking for secure wireless networks and "complex and unique passwords. Don't use your Netflix password!"
U.S. News & World Report, June 8, 2020