Former employees of GunnAllen Financial experience been fined by the U.S. Securities and exchange Commission (SEC) for failing to adequately protect customer data. The former president and national sales manager broke privacy by transferring the info of GunnAllen Financial clients over to a new business after or during GunnAllens november 2010 liquidation. The sales coach was authorized by the chairperson to take a thumb drive with the information of about 16,000 clients with him to his new job. The two former employees were fined $20,000 each and a third former head compliance officer was fined $15,000 for failing to ensure that the firms policies and procedures were reasonably designed to safeguard confidential customer information. The fines are based on violations of the SECs safeguard Rule, which requires institutions and financial advisers under sec jurisdiction to protect customer data and dedicate customers the opportunity to opt out of having their info shared with unaffiliated third parties.