The SEC wants companies to talk about cybersecurity

On February 21, 2018, the Securities and Exchange Commission issued an interpretive release providing important guidance to certain registrants on cybersecurity disclosure.

  • The guidance makes clear its view that material risks or incidents related to cybersecurity fall within a company’s ongoing obligation to disclose material information in current and periodic reports.
  • The guidance also expands on disclosure controls and procedures, insider trading and selective disclosures.
  • The decision to release this guidance underscores a heightened focus on cybersecurity and serves as a reminder to registrants that cybersecurity is a top priority for the Commission.

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