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Key Aspects Of SEC Guidance On Cybersecurity Disclosures

Law360 (March 2, 2018, 12:28 PM EST) -- The U.S. Securities and Exchange Commission on Feb. 21 voted unanimously to approve its commission statement and guidance on public company cybersecurity disclosures. The guidance highlights the need for cybersecurity disclosures based on current reporting obligations and the materiality standard, identifies specific cybersecurity risk factors, and emphasizes two new areas of focus concerning the adoption by public companies of appropriate policies and procedures to address cybersecurity matters and to enforce insider trading prohibitions.

In the guidance, the SEC concluded that, based on “the increasing significance of...
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