SEC Official Predicts More Cyber Enforcement Cases

Editor’s Note: CRE has warned that the SEC’s cyber security guidance and related activities are “a lightening rod for litigation,” see here.

From: Bloomberg/BNA

By Stephen Joyce

The Securities and Exchange Commission doesn’t automatically equate a cyber hacking episode with a regulatory violation, but nonetheless expects companies to act reasonably to avoid such attacks, David Glockner, head of the SEC Chicago Regional Office, said.

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The SEC has used its rule-making authority to promote compliance with cybersecurity standards when it implemented Regulation S-ID, regarding the disclosure of nonpublic personal information, and Regulation SCI, a rule designed to strengthen the technology infrastructure of the U.S. securities markets, Glockner said.

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