SEC’S Guidance on Cybersecurity, Cyber Incident Disclosure

The U.S. Securities and Exchange Commission on occasion provides disclosure guidance on topics of interest to the business and investment communities. The SEC said recently that it has observed “an increased level of attention focused on cyberattacks.”¹Division of Corporation Finance, U.S. Securities and Exchange Commission, CF Disclosure Guidance: Topic No. 2 (Oct. 13, 2011), http://www.sec.gov/divisions/corpfin/guidance/cfguidance-topic2.htm.

The rash of costly cyberattacks against companies like Epsilon and Sony, among others, gave the SEC cause to implement new cybersecurity disclosure requirements (200 DER C-1, 10/17/11).²Bryce Baschuk, New SEC Rules Require Companies to Disclose Cybersecurity Risks, ...