SEC Cybersecurity Recommendations for Registered Investment Advisors (RIAs) and Investment Companies

Since 2011, the Security Exchange Commission (SEC) has taken a distinct focus on the cybersecurity stance of Registered Investment Advisors (RIAs) and investment companies (“funds”) to adopt stronger cybersecurity programs and policies.

The SEC is expected to release the Final Rule proposed under the Investment Advisers Act of 1940 and the Investment Company Act of 1940 that will require RIAs and funds to better address their cyber risks, enable 24/7 threat detection and response capabilities, and disclose significant cybersecurity incidents in a timely manner.

As a result, the goal of this proposed rule is to address four key areas of cyber risk management: risk assessment, threat and vulnerability management, cybersecurity incident response and recovery, and user security and access.

Download this checklist to learn about the proposed rule that the SEC released for RIAs and investment companies and pragmatic cybersecurity recommendations your team should adopt to improve your overall cybersecurity posture.