Senators Want More out of SEC Plans to Address Cyberattacks – By Mariam Baksh (Nextgov) / February 11, 2022
A rule the commission proposed for investment funds and advisors is not precisely what key cybersecurity leaders had in mind.
A bipartisan letter from a handful of notable senators to the Securities and Exchange Commission points to a potential disconnect over how to protect companies, and individuals, from cyberattacks.
The expectant letter came one day before the SEC proposed a rule requiring certain registrants—investment funds and advisors—to write and implement cybersecurity policies to protect their customers from related harm, disclose any recent cybersecurity incidents on their brochures and to report such incidents along with related records to the commission.
“We applaud your efforts to promote transparency and oversight of cybersecurity risks at public companies and at financial sector registrants like investment funds, investment advisers and broker-dealers,” reads the Tuesday letter. “Investors deserve a clear understanding of whether companies and investment managers are prioritizing cybersecurity. They also have a right to prompt notification of serious cybersecurity incidents. More information will enable investors to hold companies and investment managers accountable.”
