On January 24, 2022, Securities and Exchange Commission Chair Gary Gensler gave a speech at the Northwestern Pritzker School of Law’s Annual Securities Regulation Institute signaling the SEC’s intention to step up its cyber-related regulatory and enforcement efforts.
Gensler described the continued rise in cybersecurity incidents targeting the financial sector as a serious threat to the nation’s economy and critical infrastructure, with costs potentially in the trillions of dollars.
In outlining the SEC’s enhanced cyber focus, Gensler stressed three areas of emphasis: (1) cyber hygiene and preparedness; (2) cyber incident reporting to the government; and (3) public disclosures. The SEC’s increased emphasis on cybersecurity continues to merit attention by SEC registrants in the financial sector (including broker-dealers, investment companies, registered investment advisers, and other market intermediaries) and the service providers that work with them, as well as by publicly traded companies.
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