Alan S. Wernick Discusses Inadequate Disclosure Controls and Procedures and SEC's Enforcement Actions in ABA's Business Law Today

11.23.21

Alan S. Wernick discussed recent cybersecurity threat enforcement by the Securities and Exchange Commission (SEC) and its implications for businesses in the American Bar Association’s Business Law Today.

In “SEC Increasing Cyber Threat Enforcement: Charges Issuer with Failure to Maintain Proper Cybersecurity Controls and Procedures,” Alan covers the SEC’s June 14, 2021 settlement order involving the First American Financial Corporation (FAFC).

The SEC alleged cybersecurity disclosure controls failures at the FAFC, and the FAFC agreed to pay a penalty of nearly half a million dollars and cease from further violations without admitting or denying the SEC’s findings. In addition to the FAFC, the SEC has taken several other recent enforcement actions to reduce the growing business risk of cybersecurity threats.

Alan shares actions companies can employ to avoid these enforcement actions and promote proper risk management tactics including:

• Maintaining strong cybersecurity policies
• Conducting employee training on these polices
• Ensuring the business’s contracting practices contain provisions consistent with these policies
• Conducting periodic legal audits to check policy compliance

Read the full article here.

Alan is a business transactions attorney, with a background in accounting and technology, focusing on matters of information technology, privacy/cybersecurity and intellectual property law. His in-depth experience as a seasoned legal counselor and advocate, arbitrator and mediator and as a bridge builder among business, technology and intellectual property communities is well respected by individuals across professional industries.



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