SEC Adopts Significant Cybersecurity Amendments To Regulation S-P

On May 16, 2024, the Securities and Exchange Commission (SEC) adopted final amendments to Regulation S-P, one year after issuing the proposed amendments (discussed here). Regulation S-P is a set of privacy rules that govern how certain financial institutions handle nonpublic personal information. These amendments seek to modernize requirements for broker-dealers (including funding portals); investment companies such as mutual funds, closed-end funds and business development companies (BDCs); SEC-registered investment advisers (RIAs); and transfer agents (collectively, "Covered Institutions")¹ to address the expanded use of technology and corresponding risks that have developed since the rules were first adopted in 2000.