AutoInformed

The Securities and Exchange Commission has adopted rules requiring registrants to disclose material cybersecurity incidents they experience and to disclose on an annual basis material information regarding their cybersecurity risk management, strategy, and governance. The Commission also adopted rules requiring foreign private issuers to make comparable disclosures. The rules potentially will affect automakers’ use of customer data regarding how they gather it and keep it secure. Data breaches are an ongoing problem in the auto industry that will now become public. (AutoInformed: Hack Attacks – Connected Vehicle Cyber Security Lags; Do No Harm – Center for Auto Safety Drafts AV Bill of Rights; FBI with a Tesla Employee’s Help Stops Malware Attack)

“Whether a company loses a factory in a fire — or millions of files in a cybersecurity incident — it may be material to investors,” said SEC Chair Gary Gensler. “Currently, many public companies provide cybersecurity disclosure to investors. I think companies and investors alike, however, would benefit if this disclosure were made in a more consistent, comparable, and decision-useful way. Through helping to ensure that companies disclose material cybersecurity information, today’s rules will benefit investors, companies, and the markets connecting them.” Continue reading →