IDC Update: August 3, 2023
Registration Now Open: 2023 IDC Fund Directors Conference on October 11–13
Please join us for the 2023 IDC Fund Directors Conference, the premier event for the independent director community, in Chicago, Illinois from Wednesday, October 11, through Friday, October 13. You may access the preliminary conference program, as well as hotel information, on IDC’s website. CLE and CPE credit is available.
Early bird registration closes on September 6. Register HERE today!
SEC Proposes Rules Regarding the Use of Artificial Intelligence by Broker-Dealers and Investment Advisers
The Securities and Exchange Commission (SEC) recently voted to propose new rules and amendments to address potential conflicts of interest associated with the use of artificial intelligence to interact with investors. According to the SEC, the proposed rules seek to prevent broker-dealers and investment advisers that use predictive data analytics and similar technologies from placing their interests ahead of investors’ interests. Under the proposal, registered investment advisers would be required to, among other things, eliminate or neutralize the effect of conflicts of interest associated with their use of certain technologies in investor interactions and implement written policies and procedures reasonably designed to prevent violations of the proposed rules. The comment period will remain open for 60 days following publication of the proposing release in the Federal Register. ICI’s memorandum summarizing the proposal is available here (login required).
Ken Burns to Join IDC for Speakers Series Event
Acclaimed filmmaker and documentarian Ken Burns will join us for the next Speaker Series event on Tuesday, September 12 at 1:30 p.m. (ET). Independent Director John Boyer will discuss with Burns the historical figures who have influenced his life and work and the leadership traits that inspire him. Please register HERE.
SEC Adopts Rules on Cybersecurity Risk Management and Incident Disclosure by Public Companies
The SEC recently adopted rules requiring public companies to disclose material cybersecurity incidents within four days after determining that an incident is material. The disclosure must describe the material aspects of the incident's nature, scope, and timing, as well as its material impact or reasonably likely material impact on the registrant. The final rules also require public companies to disclose material information regarding their cybersecurity risk management, strategy, and governance on an annual basis. When voting to adopt the proposal, SEC Chair Gary Gensler observed that “[public] companies and investors alike… benefit if [material cybersecurity information] disclosure were made in a more consistent, comparable, and decision-useful way.”
According to its Spring 2023 Regulatory Agenda, the SEC anticipates taking final action on its separate rule proposal on cybersecurity risk management for investment advisers, registered funds, and business development companies by October 2023.
Mark Your Calendar for Upcoming Events
All times are shown in eastern time (ET), unless otherwise noted.
Conference
Speaker Series
Chapter Meetings
- San Francisco, December 11
A list of IDC events can be found on IDC’s website. Please contact Paul Mussoni for additional information.
In Case You Missed Recent IDC Webinars or IDC Update Editions
Be sure to check out our recent webinars available on-demand:
As a member of IDC, you have access to a library of archived webinars and content. To access all of IDC’s archived content, please click here (login required) for full access.