Financial Advisor IQ: After Huge Data Breaches, Republicans Back Watchdog’s Move to Limit Investor Personal Data Collection
The CAT is expected to take in 58 billion records daily – including orders, cancellations, modifications, executions and quotes for the equities and options markets – and maintain data for more than 100 million customer accounts and their unique customer information, according to parties involved in the CAT.
“We have serious concerns with the federal government’s cybersecurity posture in this era of digital hacking and cyber theft,” the legislators say in a letter sent to the SEC Tuesday.
The legislators note that “virtually all of the federal financial regulators have experienced a significant data breach” in recent years. They add that “the government’s systems are subject to hundreds of intrusion attempts from foreign governments and other sophisticated parties every day.”
Signatories to the letter include Barry Loudermilk (R-Ga. 11th District), Bill Huizenga (R-Mich. 2nd District), French Hill (R-Ark. 2nd District), Warren Davidson (R-Ohio 8th District) and Ted Budd (R-N.C. 13th District).
The American Securities Association, which has been lobbying to exclude PII from the CAT, welcomes the recent pronouncements and the legislators’ follow-up to the SEC.
“The cost of putting American investors at risk is far greater than the benefits of collecting PII, and it’s not necessary for the CAT to do its job,” the ASA, which represents financial services companies, says in a statement.
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