Hacked Companies Owe SEC Faster, Fuller Disclosures Per New Rule

Publicly traded companies are adjusting their cybersecurity posture in response to a financial sector regulatory update that casts general counsels in a crucial role when responding to data breaches and other system attacks.

A Securities and Exchange Commission final rule effective in September will require such businesses to soon start reporting system breaches to the agency within four days of them determining an incident may have a material impact on the company.

The rule, which amends two federal regulations, requires publicly disclosing incidents many of the government’s other 51 existing and pending federal reporting rules don’t. It arrives as the ...