Despite the Securities and Exchange Commission's focus upon regulating the securities industry and protecting investors, the agency is moving to play a bigger role in cybersecurity. Because the SEC is responsible for customer data protection, disclosure of material information, and market system integrity, it tends to handle cybersecurity issues for advisers, broker dealers, and public companies.
Beginning in 2011, the SEC began to issue guidance for public companies that clarified risks and incidents of cybersecurity. With this guidance, many public companies have begun to pay much closer attention to cybersecurity policies as well as threats. Regulatory compliance programs can also ensure the protection of personal information, preventing identity theft risks. As cyberattacks continue to threaten many institutions and companies, the SEC will continue to evaluate, regulate, and issue guidelines for fraud protection, cybersecurity, and compliance.
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