Partner Randy Lehner
co-authored the Corporate Board Member
article “Are Cybersecurity Monitors Part Of The Next Wave For SEC Enforcement?” The article discusses the U.S. Securities and Exchange Commission’s recent focus on cybersecurity and why corporate boards of registered entities should consider the implications of a cybersecurity monitor.
The authors explain that while most efforts have focused on improving cybersecurity to prevent access to non-public information, the SEC has stated that enforcement actions against registered entities for inadequate cybersecurity policies, procedures and practices remain a significant consideration during its investigations. As more enforcement actions are brought for these issues, one of the SEC’s increasingly favored remedies—appointed independent consultants and monitors—is likely to be part of any resolution.