Colorado has proposed changes to its securities laws that spell out what financial advisers and broker-dealers need to do to keep clients’ electronic data from getting into the hands of cybercriminals, and other states may follow suit. Among its more prescriptive elements, the Colorado Division of Securities’ proposal would require firms to assess their cybersecurity risks every year. The proposed rule also calls for firms to have written policies and procedures for handling data and spells out the factors the state will consider when determining whether a company’s measures have been reasonably designed to ensure protection.
“If you compare Colorado’s proposal to existing federal regulations, this is much more specific and detailed in terms of its requirements,” said Craig Newman, a lawyer and chair of Patterson Belknap Webb & Tyler’s privacy and data security practice.
The Securities and Exchange Commission requires financial advisers it regulates to have written policies on preventing, detecting and responding to cyberattacks. It does not have a requirement for an annual cybersecurity risk assessment. The Financial Industry Regulatory Authority Inc. also has issued guidelines to member firms, and late last year it fined a dozen firms $14.4 million for handling electronic records in ways that made firm and client data vulnerable to cyberattacks. The Colorado proposal mandates use of secure email, including digital signatures and encryption, and would require firms to warn clients about the risks of using electronic communications.
A hearing on the proposal is set for May 2 in Denver. If it’s approved as proposed, it’s expected to be a costly challenge for some firms to implement.
“It’s likely to be more burdensome for small- and medium-sized broker-dealers and investment advisers than for bigger firms that are likely to have pretty substantial IT and cybersecurity capacity,” Mr. Newman said. Last month, New York became the first state to have specific cybersecurity rules for financial institutions. The rules were set by New York’s Department of Financial Services, which does not license investment advisers and brokers but regulates banks and insurance companies. Advisers, therefore, could be covered by that state’s rule if they are licensed by the department in another capacity, like as an insurance broker or agent.
The New York rules stipulate that firms must have a designated chief information security officer to oversee and enforce a cybersecurity program and require that firms report hacking attempts to the state within 72 hours if the attack has a reasonable likelihood of harming normal operations.
Other states are also reported to be working on their own cybersecurity regulations for financial firms.
“There are strong indications that this is on the radar screen of other states,” Mr. Newman said.
- ^ Colorado Division of Securities’ proposal (drive.google.com)
- ^ Most advisers’ cybersecurity training is insufficient (www.investmentnews.com)
- ^ dozen firms $14.4 million for handling electronic records (www.investmentnews.com)
- ^ Is cyber insurance worth the cost? (www.investmentnews.com)
- ^ New York became the first state to have specific cybersecurity rules (www.investmentnews.com)
A source close to UK intelligence said that the listening post had become aware at the end of 2015 of possible interactions and that this information was then sent across the Atlantic. Separately, Sir Richard Dearlove, the former British spy chief, suggested that Mr Trump may have borrowed money from Russia in the wake of the 2008 financial crisis. The former head of MI6 said that potential deals to keep Mr Trump s property empire afloat may still linger .
Sir Richard Dearlove, former boss of MI6 Credit: Martin Pope for The Telegraph
The relationship between Mr Trump and his presidential campaign team with Russia has been the subject of fierce scrutiny ever since he launched his bid to win the White House.
Mr Trump has always rejected accusations of possible ties with Moscow but the latest claims from security sources suggest that the matter has been on the radar of security services for a prolonged period of time. It has also been claimed that GCHQ was not alone in sharing information about possible interactions between figures associated with Mr Trump and Russians. Sources told the Guardian that a number of countries – including Germany and Australia – also shared intelligence on the matter.
However, the information allegedly obtained by GCHQ was reportedly not the result of any targeted operation focusing on Mr Trump or those associated with him but instead came from routine activity directed at Russian spies.
GCHQ, the Government’s listening post, which is based in Cheltenham Credit: GCHQ
The spying claims came on the same day that Sir Richard Dearlove suggested Mr Trump may have borrowed money from Russia.
There has been fierce speculation over Mr Trump s potential links with Moscow but the President has always denied having any business ties with Russia, saying there were no deals, no loans, no nothing . But Sir Richard, who was Chief of the Secret Intelligence Service, MI6, between 1999 and 2004, told Prospect magazine: What lingers for Trump may be what deals – on what terms – he did after the financial crisis of 2008 to borrow Russian money when others in the west apparently would not lend to him.”
Mr Trump s relationship with Russia has been intensely scrutinised both before and after he was elected.
Donald Trump has always denied having any business links with Russia Credit: Olivier Douliery/Bloomberg
But his position on claims of personal ties with the country has always been unequivocal. He tweeted before his inauguration in January: “Russia has never tried to use leverage over me. I HAVE NOTHING TO DO WITH RUSSIA – NO DEALS, NO LOANS, NO NOTHING!”
Mr Trump has also dismissed allegations that members of his team had contact with Moscow before he was elected, claims Sir Richard described as unprecedented .
Russia has never tried to use leverage over me. I HAVE NOTHING TO DO WITH RUSSIA – NO DEALS, NO LOANS, NO NOTHING!
The latest claims about UK intelligence services sharing information relating to Mr Trump and Russia have the potential to reignite a row which erupted after the White House accused GCHQ of helping Barack Obama spy on Donald Trump in the run-up to the US presidential election.
Sean Spicer, Mr Trump s press secretary, repeated claims made by an analyst on Fox News that the former president used the British listening post to spy on Trump Tower.
The comments prompted a furious, and unusually strong response from GCHQ which labelled the claims nonsense .
Mark Green in Army service. WASHINGTON: Who is Mark Green, really? Donald Trump s new nominee for Army Secretary has much more experience in uniform and in government than Trump s first try, West Point-educated billionaire Vincent Viola. Even some Democrats I talked with noted his impressive resume. But that doesn t mean Green s confirmation will be easy. Yes, Green knows the Army. He knows Tennessee. He knows the Tea Party. But he doesn t know much about Washington, and Washington doesn t know him. That s allowed opponents to frame the debate about Green almost entirely in terms of his conservatism on LGBT rights and immigration. Sure, those are significant questions for the Army, which is still struggling with issues ranging from women in combat to sexual assault, and whose last service secretary, Eric Fanning, was the first openly gay person to hold the job. But there are lots of other aspects of the Army Secretary s portfolio for which Green has impressive and uncontroversial credentials.
Maj. Gen Gus Hargett
I really know Mark through the Tennessee legislature, said Gus Hargett, retired two-star general, former Adjutant-General of the Tennessee Guard, and outgoing president of the powerful National Guard Association of the US. (He s) very personable, very cordial, and very willing to listen.
What I saw in Mark Green was willingness to support soldiers no matter what component they were (i.e. regular active duty, National Guard, or reserve). Any bills (on) veterans issues I always saw Mark involved in those, Hargett told me. He has been an empathetic supporter of the Tennessee Guard (and) has been a great supporter of the veterans organizations down there. Of more than a dozen sources I asked about Mark Green on the Hill and in the Army community just two felt they knew enough about him to comment, and both knew him from Tennessee. One was Hargett. The other was the only Tennessee Republican on the House Armed Services Committee, Rep. Scott DesJarlais, an early Trump supporter who (unsurprisingly) lauded Green s record.
Dr. Green s exemplary service as an Army soldier, veteran of recent military conflicts, and also physician with successful private sector experience, makes him a great nominee for Army Secretary, tasked with repairing combat readiness, DesJarlais said in a statement. I look forward to working with my fellow Tennessean to protect our troops and national security.
Rep. Scott DesJarlais
It s no wonder Green s well known in Tennessee, where he has been a rising star of the Tea Party. Green was first elected to the state legislature just five years ago, in 2012, but he was already preparing for a gubernatorial run when Trump tapped him for federal office. Before Green entered politics, he served 20 years in the US Army first as an infantry officer and then as a physician: The unusual shift in specialties, Green says, was inspired by the surgeon who saved his father s life. A Ranger School graduate who deployed to the Middle East three times as a flight surgeon in the famed 160th Special Operations Aviation Regiment (SOAR), Green first came to public notice as the medical officer assigned to monitor Saddam Hussein the night the Iraqi dictator was captured. Green later self-published a memoir focused on their conversation.
That s considerably more military experience than the few years racked up by fellow West Pointer Vincent Viola, Trump s previous nominee for Army Secretary, or for that matter by Army Reserve officer Philip Bilden, nominated for Navy Secretary. Both men were outsider billionaires who faced skepticism over their inexperience and ultimately withdrew, saying their financial affairs were simply too complex to disentangle to Congress s satisfaction. Since this double debacle, Trump has picked Pentagon nominees with a greater wealth of experience and less literal wealth. With his track record in the Army and the Tennessee legislature, Green fits right in with this new crop of candidates except for his public positions on LGBT rights and immigration, which leave him unusually vulnerable to attacks from the left.
All of these groups should give Mark a chance, because I think they will find him open and receptive to their ideas, Hargett told me, (and) what I would say to Mark (is) don t come with preconceived notions. Come with an open mind and be willing to listen.
- ^ Donald Trump (breakingdefense.com)
- ^ nominee (www.whitehouse.gov)
- ^ Vincent Viola (breakingdefense.com)
- ^ LGBT rights (www.nytimes.com)
- ^ immigration (www.knoxnews.com)
- ^ Eric Fanning (breakingdefense.com)
- ^ other aspects of the Army Secretary s portfolio (breakingdefense.com)
- ^ Gus Hargett (breakingdefense.com)
- ^ retired two-star general (www.ngaus.org)
- ^ National Guard Association of the US (breakingdefense.com)
- ^ Rep. Scott DesJarlais (desjarlais.house.gov)
- ^ early Trump supporter (www.washingtontimes.com)
- ^ rising star (www.usnews.com)
- ^ Green says (www.markegreenmd.com)
- ^ memoir (www.markegreenmd.com)
- ^ Vincent Viola (breakingdefense.com)
- ^ Philip Bilden (breakingdefense.com)
- ^ Pentagon nominees (breakingdefense.com)