SEC Provides Cybersecurity Guidance

May 21, 2015

On April 28, 2015, the Division of Investment Management (the “Division”) of the Securities and Exchange Commission issued additional guidance to both registered investment companies and registered investment advisers regarding cybersecurity (the “Guidance”).[1]  The Guidance follows the “Cybersecurity Initiative” announced last year by the Office of Compliance Inspections and Examinations (“OCIE”), and incorporates the Division’s discussions with fund boards and senior management at advisers as well as OCIE’s review of adviser cybersecurity practices.[2]
The Guidance provides a list of measures that funds and advisers may wish to consider in addressing cybersecurity risks, including:
  • conducting an assessment of cybersecurity threats and vulnerabilities (both internally and at service providers);
  • creating a strategy designed to prevent, detect and respond to cybersecurity threats; and
  • implementing the cybersecurity strategy though written policies and procedures.
The Guidance acknowledges that funds and their advisers are varied in their operations and, as such, they should tailor their cybersecurity policies and procedures based on the nature and scope of their businesses.

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If you have questions concerning cybersecurity preparedness or other compliance or examination matters, or would like more detailed information, please do not hesitate to contact any of the attorneys referenced below.

Erik A. Bergman
(203) 325-5026 or

Matthew S. Eisenberg
(203) 325-5084 or

Harold B. Finn III
(203) 325-5029 or

Richard D. Kilbride
(203) 325-5075 or

Reed W. Balmer
(203) 325-5011 or

Justin J. Shigemi
(203) 325-5065 or

[2] For more information regarding the Cybersecurity Initiative, see our bulletin, “SEC Announces Initiative to Focus on Cybersecurity,” available here.

Finn Dixon & Herling LLP is a law firm with extensive experience providing corporate, transactional, investment management, securities, tax, executive compensation, bankruptcy and litigation counsel. Our clients include large and small corporations, venture capital and private equity firms, financial institutions, hedge funds and other investment funds, investment advisers, broker-dealers, public and private businesses, executives, management teams and entrepreneurs.

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