Compliance January 5, 2015

Morgan Stanley Staffer Fired for Allegedly Stealing Client Data

Morgan Stanley on Monday began advising certain wealth management clients that an employee had stolen partial client data.
Reported by

The employee, who had worked in the firm’s wealth management division, was terminated, and law enforcement and regulatory authorities were informed.

The breach was discovered in late December during a routine sweep, the firm said. Partial account information, which did not include account passwords or Social Security numbers, of up to 10% of all wealth management clients was stolen. The firm said it is notifying all potentially affected clients and instituting enhanced security procedures, including fraud monitoring on these accounts.

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“While there is no evidence of any economic loss to any client, it has been determined that some account information of approximately 900 clients, including account names and numbers, was briefly posted on the Internet,” the company said in a statement. After the exposure was detected, Morgan Stanley removed the information. All impacted clients are being contacted by the firm and their financial advisers.

Compliance January 5, 2015

Illinois Establishes Retirement Plan for Private-Sector Workers

A bill establishing the Illinois Secure Choice Savings Program has been signed into law.
Reported by

Illinois Governor Pat Quinn signed legislation establishing an individual retirement plan for private-sector employees who currently do not have access to a retirement plan at work.

Senate Bill 2758 establishes the Illinois Secure Choice Savings Program, an individual-account retirement savings option with a 3% automatic payroll deduction. Employers that do not already offer a retirement savings plan to workers, that have been in business for at least two years and employ 25 or more employees are required to participate. Employees can opt out of the program, or contribute more or less than the default 3% of salary.

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The funds will be overseen by a seven-member Illinois Secure Choice Savings Board, which will select a private firm to manage the money.

“The program will provide workers an opportunity to secure a safe retirement and give more businesses the opportunity to offer a retirement savings program at no cost to the company. The program will be self-sustaining at no additional cost to the state with the exception of start-up administrative costs,” the Governor’s office said in a statement.

The new law is effective June 1, 2015, and implementation must be complete within two years.

A number of other states are considering similar programs (see “States Moving to Fill Private-Sector Retirement Plan Void”)

 

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