The Securities and Exchange Commission (SEC) has adopted new rules requiring public companies to disclose within four days material cybersecurity breaches that could affect investors.
In a statement announcing the decision, SEC Chair Gary Gensler acknowledged that many public companies already disclose cybersecurity events to investors.
“I think companies and investors alike, however, would benefit if this disclosure were made in a more consistent, comparable and decision-useful way,” Gensler said. The rules will benefit investors, companies and the markets connecting them, he added.
Companies must also periodically spell out their efforts to manage, strategize and govern cyber attacks in cyberspace, the SEC said.
First proposed in March 2022, the rule is part of a broader SEC effort to reinforce the financial system against systems failure, data theft and cyber-intrusions.
- SEC Sues Coinbase and Binance, World's Two Largest Cryptocurrency Exchanges
- SEC Sues 2 Major Crypto Exchanges, Attempts to Regulate the Industry: Kiplinger Economic Forecasts
- SEC Sets Sights on Technologies That Encourage Excessive Trading
For the past 18+ years, Kathryn has highlighted the humanity in personal finance by shaping stories that identify the opportunities and obstacles in managing a person's finances. All the same, she’ll jump on other equally important topics if needed. Kathryn graduated with a degree in Journalism and lives in Duluth, Minnesota. She joined Kiplinger in 2023 as a contributor.
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