Rachel V. Rose, Ted Dziekanowski, and Andy Watkin-Child report:
The US Securities and Exchange Commission released its final rule, effective Sept. 5, 2023, on cybersecurity risk management, strategy, governance, and incident disclosure. Investors, registrants, and other market participants should take special notice of two key terms in the regulations: “materiality” and the “reasonable investor.”
The SEC has deemed disclosures, cybersecurity risk management, and governance to be material to both the market and to a reasonable investor.
A close look at these terms—and how the SEC and courts have interpreted them—will be a useful guide to those affected by the new rule.
Read more at Bloomberg Law.