This is an important read. The Chair of the Securities and Exchange Commission (SEC) gave a presentation on Cybersecurity and Securities Law

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This is an important read.

The Chair of the Securities and Exchange Commission (SEC) gave a presentation on Cybersecurity and Securities Law yesterday. Outlining the direction of cyber policy and regulation as it relates to financial markets including, Funds, Advisors and Broker Dealers, Data Privacy, Service Providers and Public Companies.

Having built and grown both 1st and 2nd Lines of Defence (LoD) for cybersecurity and cyber-risk for systemically important banks. I believe the chair is setting out the SECs intentions for the oversight and assurance of cybersecurity and cyber-risk going forward. In line with the intentions of the SEC as part of their 2021 regulatory calendar, to implement cyber-risk governance regulations and with CISA, DHS and Federal Governments intentions to manage cybersecurity.

If implemented these requests will impact financial markets and ultimately access to the liquidity that those US markets provide. Similar to if not in line with the ESG regime. It is important to note the potential impact on publicly traded firms that rely on US capital markets for liquidity.

‘Ive asked staff to make recommendations for the Commissions consideration around companies cybersecurity practices and cyber-risk disclosures. This may include their practices with respect to cybersecurity governance, strategy, and risk management…………….In addition, Ive asked staff to make recommendations around whether and how to update companies disclosures to investors when cyber events have occurred.’

In of itself this could get around the legislative stumbling blocks for cyber incident reporting (FISMA 2022). Requiring public firms to report cyber incidents under Securities law. Public firms may have to demonstrate they are managing cyber-risk and report incidents to the regulator to protect shareholders and financial markets.

Thoughts?

Dean Armstrong QC Richard Dutton Michael Clohisy Richard Cardrick Richard Lufkin Ted Dziekanowski Jason Spezzano Brian McCarthy

#theaugustagroup‚ #theaugustaplan‚ #cybersecurity‚ #supplychainriskmanagement‚ #cyberriskmanagement‚ #compliance‚ #regulatorycompliance‚ #regulatoryoversight‚ #esg‚ #cybercompliance‚ #cyberregulation‚ #cybergovernance‚ #cyberriskgovernance‚ #securitiesandexchangecommission‚ #dhs‚ #governance

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