SEC Updates Cyber Attack Disclosure Guidance for Companies

Washington Free Beacon | 2/21/2018 | Reuters
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WASHINGTON (Reuters) – The U.S. Securities and Exchange Commission on Wednesday updated guidance to public companies on how and when they should disclose cyber security risks and breaches, including disclosing potential weaknesses that have not yet been targeted by hackers.

The guidance also said company executives must not trade in a firm’s securities while possessing nonpublic information on cyber security attacks. The SEC encouraged companies to consider adopting specific policies restricting executive trading in shares while a hack is being investigated and before it is disclosed.

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It discourages companies from withholding disclosure simply because of an ongoing investigation into a cyber security matter.

The SEC, in unanimously approving the additional guidance, said it would promote "clearer and more robust disclosure" by companies facing cyber security issues, said SEC Chairman Jay Clayton, a Republican.

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"I urge public companies to examine their controls and procedures, with not only their securities law disclosure obligations in mind, but also reputational...
(Excerpt) Read more at: Washington Free Beacon
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