Cybersecurity a top SEC 2017 exam priority

Private funds and broker-dealers are also on the watch list, the agency said.

Cybersecurity is to remain among the Securities and Exchange Commission’s top examination priorities in 2017.

Its Office of Compliance Inspections and Examinations added that “private funds” would also be a key focus, although there was no specific reference to private equity.

“Staff will continue to target private fund advisors and cybersecurity. As part of its obligation to assess market-wide risks, OCIE will enhance oversight of FINRA, including assessing the quality of broker-dealer exams,” it said in a note on January 12.

OCIE director Marc Wyatt advised registrants to “evaluate their own compliance programs in these important areas and make necessary changes and enhancements.”

Cybersecurity was one of the biggest worries for private fund managers, according to a recent survey by PwC. In total, 85 percent of 111 respondents said cybersecurity at their portfolio companies was a concern, but just 27 percent were taking action to prevent an attack.