SEC Updates Guidance on Cybersecurity

Emphasizing the critical importance of cybersecurity to registered investment companies (RICs), including insurance separate accounts and business development companies, and to investment advisers, the SEC’s Division of Investment Management issued new Cybersecurity Guidance on April 28, 2015. As RICs and advisers become ever more dependent on information technology to conduct their business and as cyber threats increase in intensity and destructive potential, the Division urges RICs and advisers to review their cybersecurity strategy and improve their rapid response capability by employing the familiar paradigm of risk assessments, action plans, written compliance policies and procedures, and oversight of service providers, with a view to mitigating harm to investors and preventing violations of the federal securities laws.

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