SEC Reinforces and Elevates Cybersecurity Guidance; Board Oversight of Cybersecurity at the Forefront

On February 21, 2018, the Securities and Exchange Commission (“SEC”) published interpretive guidance on public company cybersecurity disclosures. While the new guidance confirms the SEC’s intensified focus on cybersecurity disclosures, by the SEC’s own characterization, it primarily reinforces and somewhat expands upon guidance previously issued by the SEC staff in October 2011. In fact, much of the language included in this new guidance tracks word for word with the staff’s 2011 guidance. The SEC’s five commissioners voted unanimously to issue the guidance, but the support of two commissioners was given with reservation based on their view that these “reminders” do not raise the bar on disclosure to the necessary level and leave much more to be done by the SEC on the topic.

Notable differences to the 2011 guidance include:

..Elevated significance from staff guidance to Commission-level guidance;

..Inclusion of a discussion on disclosure regarding the board of directors’ role in risk oversight of cybersecurity;

..Enhanced focus on disclosure controls and procedures as they relate to cybersecurity; and

..Considerations with respect to insider trading laws and selective disclosure under Regulation FD raised by cybersecurity incidents.

Please see full Alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© King & Spalding | Attorney Advertising

Written by:

King & Spalding

King & Spalding on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.