On August 7, 2017, the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) published a Risk Alert that summarized the OCIE Staff’s “observations from the Cybersecurity 2 Initiative examinations,” which involved validation and testing of procedures and controls of 75 broker-dealers, investment advisers, and investment companies. The staff noted that a majority of firms’ policies and procedures “appeared to have issues.” For more information, please see the Risk Alert, which is available here.