CySecurity News – Latest Information Security and Hacking Incidents
Recently, China has come up with a new cybersecurity proposal for financial firms that could create risks to operations of western organizations by making their sensitive and important data vulnerable to hacking, among other things, the cyber researchers’ group noted.
This latest regulatory proposal comes at a time when a number of western investment banks and asset managers are expanding their business in China, either by setting up wholly-owned firms or by taking a bigger share in existing joint ventures.
Following the new policy, on April 29, the China Securities Regulatory Commission (CSRC) released the draft Administrative Measures for the Management of Network Security in the Securities and Futures Industry and also offered a month-long public consultation on the proposals.
According to the draft rules, it will become mandatory for investment banks, asset managers, and futures companies willing to invest in China to share data with CSRC, allow regulator-led testing and help set up a centralized data backup center.
The draft also states that CSRC could conduct penetration-testing — a simulated cyber attack against the operational system — and system scanning on securities, futures, and fund firms.
China’s Draft Cybersecurity Rules Pose Risks For Financial Firms