Under the proposed rule, advisors will report incidents to the SEC via a confidential form. Advisors also will need to disclose major cyber breaches over the last two fiscal years on their Form ADV. The proposed rule will mandate that advisors keep books and records related to cybersecurity.
According to SEC Chairman Gary Gensler, "Cybersecurity incidents can lead to significant financial, operational, legal and reputational harm for advisers and funds." Gensler also added that "the proposed rules and amendments are designed to enhance cybersecurity preparedness and could improve investor confidence in the resiliency of advisers and funds against cybersecurity threats and attacks."
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
