US and foreign public companies with a presence in the US capital market must declare: threats and cyberattacks, impact and actions.
The U.S. Securities and Exchange Commission (SEC) has approved new rules on the disclosure of cybersecurity incidents.
In addition, he proposed regulation for investment advisers and broker-dealers to address conflicts of interest from the use of predictive analytics andartificial intelligence, to prevent them from putting their interests before those of investors.
By a 3-2 vote the new cybersecurity
rule will be binding on U.S. public companies, as well as any offshore company that qualifies as a “foreign private issuer . ”
That is, it must have a strong connection with the capital markets of this country.
The rule will come into effect on December 18.
What will be the new obligations?
Firms are thus required to disclose important information about their cybersecurity risk management, strategy and governance.
“Whether a company loses a factory in a fire, or millions of files in a cybersecurity incident, it can be important for investors”
“Both companies and investors would benefit from disclosure (of the attacks) if it is done in a more consistent, comparable and useful way for decision-making.”
SEC Chairman Gary Gensler said .
With these changes, the US Stock canada whatsapp number data Exchange will require disclosure of significant cyber incidents within four business days .
The report must include: the material aspects of the event, its nature, scope and time of the incident.
They will also describe their processes for assessing, identifying and managing material risks from cybersecurity threats.
As well as the material or probable effects of cybersecurity risks, incidents or previous threats.
Launches initiative for use of AI and predictive analysis
On Wednesday, the U.S. agency proposed new rules for brokers and investment advisers to take steps to address conflicts a strengthen your brand of interest from their use of predictive data analytics and similar technologies.
In order to prevent these companies from putting their interests before those of their customers.
“We live in a historic era with respect to predictive data analysis and the use ofartificial intelligence.
“These technologies provide an cz lists ever-increasing capacity for predictions about each of us as individuals.
“This raises the potential for conflict, as advisors are optimising their proposals to put their interests before those of investors.