SEC Proposes Cybersecurity Risk Management Rules and Amendments for Registered Investment Advisers and Funds


Key Takeaways:

  • The SEC has voted to propose sweeping regulations regarding cybersecurity risk management for registered funds and investment advisers to improve the confidence of investors, advisers, and funds ahead of breaches and attacks.
  • The newly proposed rules would require funds and advisers to address cybersecurity risks through written procedures in order to protect advisory clients and fund investors. Advisers would also have to report any cybersecurity incidents that could affect the adviser, fund, or private clients to the SEC.
  • New recordkeeping criteria would be enacted, including the disclosure of any incidents within the previous two fiscal years and other requirements involving the inspection and enforcement capabilities of the SEC.

Why it Matters:

  • Cybersecurity regulations are continuously tightening as breaches and attacks become more common and likely with each passing day. 
  • Operating within the boundaries of compliance is critical to the survival of any firm; not only is it a legal matter, but sticking to rules set by the SEC is a sure way to protect your assets as best you can. 
  • Partnering with a cybersecurity firm can guide you towards compliance and best practices through all business endeavors.


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