Bloomberg told to improve security in client data privacy probe

23 August 2013

Bloomberg has said it will create and enforce stronger barriers between its news services and financial data units to stop reporters accessing client information.

Two separate external reviews of the company's procedures were launched after it emerged reporters had been accessing client information through its financial data computer terminals in May 2013.

The first review was conducted by law firm Hogan Lovells and compliance specialist Promontory Financial Group, looked into over half a million Bloomberg stories and found 230,000 tests of client data systems.

Meanwhile, the second review was carried out by Clark Hoyt, the former New York Times public editor, and he has made newsroom-based recommendations, which have been accepted.

Bloomberg will add independent directors to the board's audit committee and is set to hire a chief risk and compliance officer to carry out periodic third-party reviews of client data compliance controls.

Furthermore, stringent checks are being implemented to make it harder to access restricted data, while monitoring systems are being improved to check for any unauthorised access.

By Asim Shah

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