Who Is Watching Over Financial Security within the SEC?
04 November 2011
Two years ago, the Securities and Exchange Commission (SEC) began requiring employees to use a new database, the Ethics Program System (EPS), to track their financial holdings. The SEC hired a third party, Financial Tracking Technologies (FTT), to manage the database. The SEC promised its employees that their personal and financial data would be safe, that only a small number of vetted, third-party employees would have access to the database and that the SEC would audit the system regularly. However, two weeks ago, the SEC sent an email to its employees explaining that FTT had allowed subcontractors to access the database without the SEC’s permission and that employees’ data may have been exposed for as long as the database has been operating. The SEC recommended that its employees review their brokerage account information to ensure that no one has been trading under their names. The SEC suspended the use of EPS last month and is currently reviewing the system.
New York Times: It Guards the Markets, but What About Itself? (22 October 2011)
(Source: New York Times)