SEC Guidance Is a Really Big Deal
In November I wrote SEC Guidance Emphasizes Materiality for Cyber Incidents , my thoughts after reading an article by Senator Jay Rockefeller and former DHS Secretary Michael Chertoff. They explained why the CF Disclosure Guidance: Topic No. 2, Cybersecurity issued by the SEC in October is a big deal. Since then I attended a conference on Director's and Officer's insurance in Connecticut, and spoke on a panel about that SEC guidance. During the conference I learned that the SEC guidance isn't a big deal -- it's a really big deal. We're talking a game changer, potentially on three fronts. Here's what I heard at the conference. First, lawyers who read the language in the SEC guidance treated it as a " stop whatever you're doing and read this " moment. The lawyers I spoke to said the SEC guidance absolutely defined new reporting duties for companies, despite talk of it being merely a "clarification" or restatement of existing guidan...