In a speech to the Securities Regulation Institute conference last week, Chair Gary Gensler signaled the SEC may implement more stringent cybersecurity regulations, and in the meantime, would work to enforce existing requirements. Since taking office in 2021, Mr. Gensler has often referred to the need for the SEC to be a “cop on the beat” to root out misconduct and address potential risk to investors. It has become increasingly clear that Mr. Gensler views addressing cybersecurity risk and misconduct as an important part of this work. In 2021, the SEC brought several actions against financial services firms or public companies that allegedly failed to heed their obligations under the federal securities law. Mr. Gensler focused on the role the SEC should play in a collaborative effort across federal agencies and the private sector to promote robust cybersecurity. Here are some key takeaways from Mr. Gensler’s comments.
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This client alert was published by Harvard Law School Forum on Corporate Governance.