BREAKING: SEC Proposes Cybersecurity Disclosure Rules For Public Companies

Today, as predicted here at CPW, a divided SEC voted to propose new rules that would require public companies to provide current reports of their material cybersecurity incidents and periodic disclosures about their cybersecurity policies and procedures. Just a month after the SEC's cybersecurity proposal for advisers and funds, the new proposed rules would apply to all public companies that are subject to the reporting requirements of the 1934 Exchange Act ("registrants"). The SEC justifies the new proposed regulations by citing the growing threat of serious cybersecurity attacks and the utility of consistent and comparable cybersecurity information for investors to more efficiently allocate capital.