SEC Guidance On Disclosure Concerning Cybersecurity Matters

On February 21, 2018, the Securities and Exchange Commission (SEC) published interpretive guidance, titled "Commission Statement and Guidance on Public Company Cybersecurity Disclosures"(Release No. 33-10459), to assist public companies in preparing disclosures concerning cybersecurity risks and incidents. The interpretive release expands upon the SEC Division of Corporation Finance's 2011 guidance on cybersecurity to emphasize the importance of going beyond generic disclosures to provide detailed information in connection with cybersecurity risks and incidents, as well as implementing comprehensive cybersecurity policies and procedures. The release emphasized several areas in particular, including board oversight, disclosure controls and procedures, insider trading and Regulation FD, each of which is described in greater detail below.