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Broker Watchdogs Accused of Letting Sensitive Data Go Public

  • Whistle-blower alleges regulatory lapses in complaint to SEC
  • Some personal data said to be accessible online for years
SEC Approves Systemic-Risk Reporting Rule For Hedge Fund Firms

Photographer: Andrew Harrer/Bloomberg

A whistle-blower is accusing some key financial regulators of allowing sensitive broker information to become readily accessible, even as industry watchdogs emphasized the need for companies to protect client data.

According to a complaint lodged with the U.S. Securities and Exchange Commission, personal data such as brokerage account numbers provided to an industry-funded regulator have long been easily accessible online. Separately, Social Security numbers and other information meant to be kept private also was made publicly accessible by state regulators for years up until 2015, according to the complaint, which was reviewed by Bloomberg News.