- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Adrianne Appel2022-09-20T18:40:00
Morgan Stanley Smith Barney (MSSB) agreed to pay $35 million to settle Securities and Exchange Commission (SEC) charges it repeatedly disregarded the safeguarding of clients’ personal data.
The personally identifiable information of approximately 15 million MSSB customers was made vulnerable over a five-year period, beginning in 2015, because of failures by the firm to protect it, the SEC said in a press release Tuesday. MSSB is a wholly owned subsidiary of Morgan Stanley.
The trouble began when MSSB did not encrypt the personal data of customers stored on computer servers and hard drives, the SEC alleged. In 2016, the firm decommissioned two data centers and didn’t properly dispose of its computer servers and hard drives, the agency said.
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The Financial Industry Regulatory Authority fined broker-dealer Morgan Stanley $1 million over alleged documentation failures related to risk management controls and supervisory procedures involving violations of the Market Access Rule.
The Securities and Exchange Commission will require broker-dealers and registered investment advisers to adopt written policies and procedures for handling data breaches of customer data and notify affected customers within 30 days.
Morgan Stanley agreed to pay $6.5 million as part of a settlement with six states requiring the firm to strengthen its data security after actions it took compromised the personal data of millions of customers.
USAA Federal Savings Bank has been hit with its third cease and desist order from the Treasury Department’s Office of the Comptroller of the Currency in the past five years for failing to correct unsafe and unsound banking practices.
Becton Dickinson medical device company will pay $175 million for “repeatedly” misleading investors about its Alaris infusion pump, a product the company knew was flawed and was sold without the required patient-safety approvals, the Securities and Exchange Commission said.
The Securities and Exchange Commission charged bankrupt fashion retailer Express with failing to disclose nearly $1 million in perks to a former chief executive, but did not levy a financial penalty thanks to its cooperation, the SEC said.
