02.09.22

The SEC Approves Advisor Private Fund and Cybersecurity Proposals

by: Tracey Longo

The SEC on February 9 approved three proposals that will directly impact financial advisors: a proposal to require advisors to private funds to provide full cost and performance disclosures to clients, a proposal that outlines advisors’ cybersecurity duties and a proposal to accelerate the securities settlement cycle from two days to one. The cybersecurity rule would require both advisors and funds to implement written cybersecurity policies and procedures designed to address cybersecurity risks that could harm advisory clients and fund investors. It would also require advisors to report significant cybersecurity incidents affecting the advisor or its fund or private fund clients to the SEC using a new confidential form.

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