A new Securities and Exchange Commission proposal would add cybersecurity to the commission’s environmental, social, and governance investing disclosure requirements, lawyers say.
If passed, the rule could force portfolio managers to examine cybersecurity protocols when picking investments for ESG funds, they add.
The SEC proposed a rule Wednesday, March 10, 2022, that would require publicly traded corporations to disclose cyberattacks within four business days of the hack being discovered.
Foreside’s Jessica Penovich provided commentary around how compliance professionals will need to follow how the final rule is enforced to fully understand when various cybersecurity incidents become material.
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