SEC Proposes Cybersecurity Risk Management Rules For Registered Funds And Advisers

On February 9, 2022, the SEC published a release addressing Cybersecurity Risk Management for Investment Advisers, Registered Investment Companies, and Business Development Companies ("Release"). The Release contained proposed new rules under the Advisers Act (Rules 206(4)-9 and 204-6) and the Investment Company Act of 1940 (Rule 38a-2) and amendments (collectively, the "Proposals"), which would require registered investment advisers ("advisers") and registered investment companies ("registered funds") to implement cybersecurity risk management programs and new incident notification regimes. If adopted, the Proposals would:

• Require advisers and registered funds to disclose detailed information about their "cybersecurity risks" and "cybersecurity incidents" to current and prospective clients and shareholders;