Tag Archives: Securities and Exchange Commission

SEC Continues to Focus on Cyber-related Disclosures

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Participating in a panel at the “SEC Speaks” event on February 19, Deputy Director of the SEC’s Enforcement Division Stephanie Avakian expressed that the Commission continues to focus on cybersecurity as a top priority in 2016. Avakian discussed the Commission’s cybersecurity concerns in three contexts: (1) failure of registered entities to follow Rule 30(a) of Regulation S-P (the “Safeguards Rule”) in protecting customers’ records and information; (2) illicit securities trading following theft of material non-public information; and (3) cyber-related disclosures by public companies, [...] Read more

SEC Sanctions Investment Adviser Under the Safeguards Rule

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The Securities and Exchange Commission (“SEC”) has sanctioned an investment adviser and fined it $75,000 for failing to “adopt written policies and procedures reasonably designed to protect customer records and information.”  The SEC alleges that this failure, which was a violation of its Safeguards Rule, contributed to a cyber attack against the investment adviser that put the sensitive personally identifiable information (“PII”) of more than 100,000 individuals at risk.  The Safeguards Rule, part of the SEC’s Regulation S-P, requires brokers, dealers, investment companies, and [...] Read more

SEC Confirms Plans To Issue New Cybersecurity Disclosure Rules

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According to Smeeta Ramarathnam, Chief of Staff to SEC Commissioner Luis Aguilar, the SEC is currently engaging in a comprehensive re-work of its investor disclosure rules, including with respect to rules bearing on cybersecurity incident disclosure. The SEC, which is formally tasked with overseeing issues that concern market integrity and disclosure of material information, revealed its plan to overhaul its disclosure rules during an April 23 panel at the 2015 RSA Conference in San Francisco, during which Ramarathnam stated that the SEC was entering “a time of great change” with respect to [...] Read more