The SEC is The U.S. Securities and Exchange Commission an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market manipulation. Throughout history, the SEC has adapted to the global financial world, technology, and Black Swan events. So how are they dealing with the Ukraine and Russia war? Well recently the SEC proposes a new set of cybersecurity rules for public companies with respect to the ongoing conflict. The proposal contains two components. First, mandatory cybersecurity incident reporting: “Material” incidents would have to be reported on an 8-K form within four business days of the incident. Second, is that Companies must provide updates on previously reported material cybersecurity incidents.
It’s hard to say why exactly these rules help, but it’s not hard to guess why they’ve been implemented. With cybersecurity and cyberwarfare alike increasing in frequency, the U.S and its financial institutions must be prepared to deal with any attacks coming from Russia or other countries. After all, cyberattacks are clean, require no boots on the ground, and can cause major internal damage to a nation’s public and private systems. These proposals come as an additional later to the SEC’s proposed rules related to cybersecurity policies for investment advisors and registered funds, which are still out for public comment. What do you think about the SEC’s new regulations? And will they serve as a useful cyber-defense layer for the U.S?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.