Compilation of Results of a Pilot Survey of Cybersecurity Practices of Small and Mid-Sized Investment Adviser Firms

From: North American Securities Administrators Association (“NASAA”)

A Pilot Survey To Compile Cybersecurity Information

Introduction: Developing A Pilot Cybersecurity Project

NASAA’s pilot cybersecurity project was designed to better understand the cybersecurity practices of state-registered investment advisers, which account for over half of the registered investment advisers conducting business in the United States. Through the use of a template survey, the pilot project sought to elicit information to better understand the technology and data practices of state-registered investment advisers; how these advisers communicate with clients; and what types of policies and procedures these advisers currently maintain. The pilot project also focused on specific uses of technology and websites, with a goal of understanding the safeguards used by state-registered investment advisers to protect client information; to inform state examination programs; and to identify national cybersecurity trends relevant to state-registered investment advisers.

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