WASHINGTON (3/8/16)--A member of the Senate Banking Committee is seeking "much better coordination" among the various financial regulators to ensure a consistent cybersecurity examination approach--one that "does not waste precious time or valuable resources that could be better used in the ongoing defense against cybercriminals."
Sen. Dean Heller wrote last week to the chairmen of the Financial Stability Oversight Council (FSOC), Jacob Lew, and the Federal Financial Institutions Examinations Council (FFIEC), Daniel Tarullo, saying he believes the two entities need to take the initiative in coordinating such exams. Lew and Tarullo also are secretary of the U.S. Treasury Department and a governor of the Federal Reserve Board, respectively.
Currently an institution may be subject to cybersecurity-related examinations or information requests from multiple regulators.
That could apply to credit unions that are subject, for instance, to both federal and state exams or any credit union involved in a credit union service organization subject to more than one information technology oversight agency.
"When firms are required to adhere to a new set of regulatory requirements each time a different financial regulators undertakes a cybersecurity exam, or when firms are constantly spending time educating regulators about practices that should be commonly understood, critical resources are being diverted" from fighting cybercrimes, Heller wrote.
The Republican senator from Nevada requested a response from Lew and Tarullo on what steps FSOC and the FFIEC can take to increase exam coordination.