The No. 1 priority at the Securities and Exchange Commission (SEC) after organizations are impacted by a cybersecurity incident is that investors receive timely and accurate disclosures, according to the agency’s enforcement head.
The SEC understands firms have to make quick decisions when responding to a cyberattack, including around disclosures, said Gurbir Grewal during a speech at a cyber resilience summit on June 22.
“But we cannot lose focus of the fact that those decisions directly impact customers” and might be material to investors, Grewal said. Publicly traded companies, investment advisers, and broker-dealers collect and hold an extensive amount of data about organizations and client accounts, plus personally identifiable information about individuals that’s valuable to bad actors, Grewal said.
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Businesses can prepare for the Securities and Exchange Commission’s upcoming cybersecurity disclosure rule by going through it and identifying key gaps in compliance.
The clock is ticking for public companies to put in place policies and practices to meet the requirements of the Securities and Exchange Commission’s newly approved cybersecurity incident disclosure rule.
The Securities and Exchange Commission finalized its controversial rule requiring public companies to disclose the nature, scope, timing, and impact of cybersecurity incidents deemed to be material within four business days.
Wisconsin-based broker-dealer Carl M. Hennig agreed to pay a $50,000 fine to settle allegations by the Securities and Exchange Commission it failed to comply with Regulation Best Interest.
GTT Communications, a provider of telecommunications and internet services, avoided a civil penalty in reaching a settlement with the Securities and Exchange Commission addressing alleged disclosure failures over more than a two-year period.
New York-based brokerage firm J.H. Darbie & Co. consented to pay a $125,000 penalty to resolve charges levied by the Securities and Exchange Commission that the firm failed to report suspicious activity regarding penny stock transactions.
