SEC Issues First Fine Over Client Privacy Breach

The Securities and Exchange Commission (SEC) has issued its first-ever fine for failing to properly protect customer data. The charges involve former president Fredrick O. Kraus and former national sales manager David C. Levine of  GunnAllen Financial. The SEC press release said that both parties “violated  customer privacy rules by improperly transferring customer records to another firm.” This is the first case in which people were charged soley with violating Regulation S-P, also known as the Safeguard Rule.

More information can be found here.

Melanie S. Touchstone