Fund management executives and board directors play a crucial role in helping asset management firms navigate cybersecurity. As the financial, operational and reputational costs of cyber risk continue to mount, successful collaboration between fund management
executives, cybersecurity executives and the board is essential for effective oversight of cybersecurity.
Accelerated Rule Making
The Securities and Exchange Commission (SEC) has proposed rules requiring registered investment advisers and investment companies to adopt and implement written policies and procedures for cybersecurity.
In addition, they would need to report significant cybersecurity incidents affecting the investment adviser, or the funds it advises, to the SEC within 48 hours of determining an incident is significant.
Firms would also need to disclose cybersecurity risks and incidents in their disclosure documents and implement a rigorous new recordkeeping policy related to cybersecurity.
Boards may also be required to approve the cybersecurity policies and procedures of certain registered fund service providers, such as its investment adviser, principal underwriter, administrator or transfer agent.
The…
