Publisher: Reuters Author: Nate Raymond The U.S. Securities and Exchange Commission's controversial use of in-house…
SEC Playing Bigger Role In Cyber-Security
Publisher: The National Law Journal
Author: Nick Akerman and Parker Schweich
The Securities and Exchange Commission has ramped up its efforts in prompting public companies to take proactive steps in ensuring the integrity of market systems and customer data protection.
Although the SEC is not an agency that typically comes to mind in the war against cyber threats, the SEC does maintain jurisdiction over cyber-security issues for public companies, broker-dealers and investment advisers.
In October 2011, the SEC began its focus on cyber security issue by issuing guidance for public companies on disclosing risk and incidents that require disclosure. Since issuing that guidance, the amount of disclosures in regards to data breach incidents, risk factors, trends and uncertainties have grown. A benefit associated with this guidance is that board executives are rethinking their disclosure controls and procedures in terms of risk oversight.
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