News & Insights

Cybersecurity and ESG Proposals Are on the Horizon: Key Takeaways from SEC Chair’s Senate Testimony


Before the Senate Banking Committee on September 14th, SEC Chair, Gary Gensler, indicated that numerous rules related to cybersecurity and climate risk, among others are in the works. Even though this is the first time the rule proposals have been mentioned, these topics have appeared in recent Risk Alerts and annual priorities list as well as the mid-year agenda. Industry experts have noted that regulators have been dropping hints for some time now. Here are the takeaways from the testimony:


Cyber Rule Proposal

This rule might require companies to have:

(1) standardized cybersecurity systems

(2) procedures to manage cybersecurity risk

(3) practices to keep the data safe (also known as “cyber hygiene”)

The proposal is also expected to include requirements for responding to data breaches.

Senator Mark Warner told the SEC that companies that fail to report breaches should be penalized to ensure accountability.

Climate Rule Proposals

Fund shops and others were given until June of this year to comment on a proposed rule that would require public companies to potentially disclose certain climate-related data.

The Commission is expected to propose two rules that meet all the three facets of the SEC’s mission: protecting investors, promotion capital formation, and ensuring fair and efficient markets. The proposals would seek to standardize how issuers disclose climate change and how funds develop ESG marketing and advertising.


The SEC’s regulatory agenda is stacked with developing regulations that, once passed, will have a lasting impact on your firm’s operations and compliance program. Your firm should stay up-to-date on proposed rules, contribute to public comments as you see fit, and prepare to adopt new regulations when required.

Keeping track of new regulations can be tedious and time consuming. Fairview is here to close the gap. Our team of compliance experts stays up to date on the latest rules and requirements from the SEC. And if your firm requires assistance with implementing cybersecurity programs to comply with industry best practices and regulatory expectations, our affiliate, Fairview Cyber can assist.

Contact us today for more information about what we can do for your firm.