Regulator fines employees for client data disclosure

One of the most common cases we investigate at Klein & Co. is the misappropriation of confidential information by employees. These cases inevitably focus on the actions of the employees and the damage occasioning the company from whom the information was taken.

However in an apparent first in the US, the Securities and Exchange Commission (SEC) recently stepped into one such case, fining two former employees of a brokerage firm who "violated customer privacy rules by improperly transferring customer records to another firm". The former head of compliance was also fined for failing to "ensure that the firm's policies and procedures were reasonably designed to safeguard confidential customer information".

InformationWeek published this interesting article on the case.