Financial Services & Insurance Compliance in Massachusetts

Banking, insurance, investment, and financial services regulatory compliance for Massachusetts financial institutions.

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Mandatory Frameworks
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Recommended Frameworks
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Related Frameworks

Massachusetts Context

Massachusetts has a robust financial services sector with over 100 insurance companies headquartered in the state, including industry leaders like Liberty Mutual and State Street Corporation. Boston is a major center for asset management, banking, and insurance. Financial institutions in Massachusetts must comply with federal regulations (GLBA, SOX for public companies) as well as state data security requirements.

Massachusetts-Specific Requirements for Financial Services & Insurance

All companies in Massachusetts, including those in the financial services & insurance sector, must comply with Massachusetts data security and privacy regulations:

Pro Tip: Start with 201 CMR 17.00 - Massachusetts' foundational data security regulation that applies to all businesses handling personal information of Massachusetts residents.

Mandatory Compliance Frameworks

These frameworks are legally required for financial services & insurance companies. Non-compliance can result in significant penalties, fines, and legal consequences.

201 CMR 17.00

MANDATORY MA-SPECIFIC

Standards for the Protection of Personal Information of Residents of the Commonwealth

Massachusetts comprehensive data security regulation requiring businesses to protect personal information of Massachusetts residents.

Enforcement: Massachusetts Attorney General

M.G.L. c. 93H

MANDATORY MA-SPECIFIC

Massachusetts General Law Chapter 93H - Notification of Security Breaches

Massachusetts law requiring notification of security breaches involving personal information.

Enforcement: Massachusetts Attorney General

PCI DSS

MANDATORY

Payment Card Industry Data Security Standard Version 4.0.1

Global security standard providing baseline technical and operational requirements to protect payment card account data, mandated by payment card brands (Visa, Mastercard, Amex, Discover, JCB) through contractual agreements.

Enforcement: Payment card brands (Visa, Mastercard, American Express, Discover, JCB) through acquiring banks and payment processors. PCI SSC develops standard but does not enforce. Contractual requirement, not legal (except Nevada state law).

GLBA

MANDATORY

Gramm-Leach-Bliley Act (Pub. L. 106-102, 15 USC 6801-6809, 6821-6827)

Federal law requiring financial institutions to protect consumer financial information privacy and implement comprehensive data security programs

Enforcement: Federal Trade Commission (FTC); Office of the Comptroller of the Currency (OCC); Federal Reserve Board; Federal Deposit Insurance Corporation (FDIC); National Credit Union Administration (NCUA); Securities and Exchange Commission (SEC); State Insurance Regulators; Commodity Futures Trading Commission (CFTC)

Recommended Best Practices

While not legally mandatory, these frameworks represent industry best practices for financial services & insurance companies. Implementing these can improve security posture, build customer trust, and provide competitive advantages.

NIST CSF 2.0

RECOMMENDED

National Institute of Standards and Technology Cybersecurity Framework Version 2.0

Voluntary framework providing guidance for organizations to manage and reduce cybersecurity risk through a common language and systematic approach.

Also applies to: All Industries Critical Infrastructure Healthcare Financial Services

NIST SP 800-53

RECOMMENDED

Security and Privacy Controls for Information Systems and Organizations

Comprehensive catalog of security and privacy controls for federal information systems and organizations, providing over 1,150 controls across 20 control families to protect organizational operations and assets from diverse threats.

Also applies to: Federal Government Federal Contractors Cloud Service Providers (FedRAMP) Critical Infrastructure

ISO 27001

RECOMMENDED

Information security, cybersecurity and privacy protection — Information security management systems — Requirements

International standard specifying requirements for establishing, implementing, maintaining and continually improving an Information Security Management System (ISMS), with risk-based approach to protecting information assets.

Also applies to: All Industries Technology/SaaS Healthcare Financial Services

SOC 2

RECOMMENDED

Service Organization Control 2: Trust Services Criteria for Security, Availability, Processing Integrity, Confidentiality, and Privacy

Voluntary examination framework reporting on controls at service organizations relevant to security, availability, processing integrity, confidentiality, or privacy, conducted by licensed CPAs following AICPA attestation standards.

Also applies to: SaaS Providers Cloud Service Providers Managed Service Providers (MSPs) Data Centers

Implementation Roadmap

Follow this recommended sequence to achieve compliance as a Massachusetts financial services & insurance company.

1

Complete Massachusetts Requirements First

Begin with 201 CMR 17.00 (data security) and M.G.L. c. 93H (breach notification). These apply to all Massachusetts businesses and form the foundation of your compliance program. Prepare for MDPA compliance (effective 2025).

2

Implement Industry-Specific Mandatory Frameworks

Address all mandatory frameworks for the financial services & insurance sector. These are non-negotiable legal requirements with enforcement and penalties.

3

Add Recommended Best Practices

Strengthen your security posture with recommended frameworks. While not mandatory, these can differentiate your company, win customer trust, and may become requirements for certain contracts or partnerships.

4

Continuous Monitoring and Improvement

Compliance is not a one-time project. Maintain ongoing monitoring, conduct regular assessments, update policies as regulations change, and train employees continuously. Use MyRHC to track your compliance status and stay informed of regulatory updates.

Get started with MyRHC

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MyRHC provides comprehensive tools and guidance for Massachusetts financial services & insurance companies to navigate complex compliance requirements.