Perhaps a long time coming, as noted in this Sunshine Act notice, the SEC will hold an open Commission meeting on Wednesday to issue an interpretive release providing cybersecurity disclosure guidance. The last cybersecurity guidance came from Corp Fin – not the Commission itself – back in 2011. Just this week, Commissioner Stein delivered a speech noting that current cybersecurity disclosure from companies was insufficient.
Not sure of the source & accuracy of this article, but the “SD Times” seems to know what will be in the interpretive guidance. Here’s an excerpt:
The updates are expected to take effect in the first and second quarter of this year, and it will require that investors are notified of all data breaches, instead of only notifying them of major cyber attacks.
The new update will include rules about sending timely breach notifications to senior management. Secondly, the upcoming guidance is expected to address how firms should disclose cybersecurity events that represent a material risk to their investors. In addition, it will provide information on how firms can create a blackout to prevent insider trading following a cybersecurity event.
Kyle Moffatt Named Corp Fin’s Chief Accountant
Yesterday, Corp Fin announced that Kyle Moffatt would be the Division’s Chief Accountant. Not surprising given that Kyle has been serving in that capacity since Mark Kronforst left last month.
Transcript: “Alan Dye on the Latest Section 16 Developments”
We have posted the transcript for the recent Section16.net webcast: “Alan Dye on the Latest Section 16 Developments.”
– Broc Romanek