SEC Charges Brokerage Executives with Failing to Protect Confidential Customer Information

SEC Press Release 2011-86

April 7, 2011

The SEC announced settled administrative proceedings against three executives of a Florida-based broker-dealer alleging violations of customer privacy rules by improperly transferring customer records to another firm. The SEC also alleged that the firm failed to ensure that its policies and procedures were reasonably designed to safeguard confidential customer information.

Cross References

Regulation S-P, Rules 7(a), 10(a), 30(a)

SEC Release No. 34-64222 (action against firm's CCO)

SEC Release No. 34-64221 (action against firm's president)

SEC Release No. 34-64220 (action against firm's national sales manager)