Money Managers Must Disclose Data Breaches Under New SEC Plan (1)

The SEC has proposed rules that would require BlackRock Inc., The Vanguard Group, and other money managers to report cyberattacks against them.

The Securities and Exchange Commission on Wednesday voted 3-1 along party lines to release a proposal that would increase asset managers’ cybersecurity disclosures to their customers and the agency. Firms currently don’t have to report when they’re compromised by hackers under SEC rules, unless they deem the incidents important enough to their clients.

The proposal for money managers and funds is the first step under Democratic SEC Chair Gary Gensler to enhance cybersecurity reporting. An SEC plan ...