Security Assessment

SEC Guidance on Public Company Cybersecurity Disclosures

The U.S. Securities and Exchange Commission issued new guidance for public companies to be more forthcoming when disclosing cybersecurity risks, expanding on previous guidance issued in 2011. In addition to warning corporate insiders not to trade shares when they have information about cybersecurity issues that isn’t public, the guidance advised that internal or law enforcement investigations cannot be used as an excuse for not informing the public. The unanimously approved guidance, was published “interpretive guidance,” which the SEC uses to publish their views and interpret the federal securities laws and SEC regulations.

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