SEC Poised To Turn Cybersecurity Focus Into Enforcement

Law360, New York (July 7, 2017, 12:09 PM EDT) -- Officials at the U.S. Securities and Exchange Commission have made it crystal clear they’re focused on how American markets and firms are preparing for and disclosing cyberattacks, and experts say public companies and regulated firms should brace for a wave of enforcement.

The SEC has been urging companies to bolster their cybersecurity for years now, making the area a priority on broker-dealer and investment adviser exams for three years in a row, and the agency’s focus appears unlikely to change under new Chairman Jay Clayton.

Clayton said during his Senate confirmation hearing that he questioned whether public companies are adequately disclosing...

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