U.S. SEC Chair Gensler Maps Out Potential Overhaul to Agency's Cyber Rules

A Reuters article dated January 24, 2022, says that the US Securities and Exchange Commission (SEC) is considering extending cyber risk management rules to third-party service providers, and beefing up public company disclosures when they experience a breach.

Gary Gensler, chair of the SEC said, in an address to securities industry professionals, mapped out a sweeping overhaul of SEC cyber rules, including changes to how stock exchanges and clearinghouses mitigate and report on cyber risk under the Regulation "Systems Compliance and Integrity" (SCI) aimed at reducing systems issues and improving resilience.

Gensler added that new cybersecurity rules could extend to registered firms' third-party service providers, including fund administrators, index providers, custodians and others not currently registered with SEC.

These new rules could include a variety of measures, such as requiring certain registrants to identify service providers that could pose such risks; holding registrants accountable for service providers’ cybersecurity measures and protecting against inappropriate access and investor information.

"This could help ensure important investor protections are not lost and key services are not disrupted as financial sector registrants increasingly rely on outsourced services" Gensler said.

Learn more at U.S. SEC Chair Gensler maps out potential overhaul to agency's cyber rules | Reuters.