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The House Financial Services Committee has approved along party lines a resolution from Rep. Andrew Garbarino (R-NY) to roll back a controversial Securities and Exchange Commission rulemaking that went into effect in December to require publicly traded companies to disclose cyber incidents. 'Under this new reporting regime, public companies are required to publicly disclose any cybersecurity incident they determine to be material within four days of the company’s determination. Further, the final rule requires new annual report disclosures regarding a company’s policies, procedures and risk management,' Garbarino said at a May 16 markup session. Garbarino said, 'Disclosing such information could potentially compromise the confidentiality of a company’s cybersecurity program and reveal details such as the scope and frequency of testing, the nature of third party systems and specific remediation activities.' Garbarino is chair of the House Homeland Security cyber subcommittee and held a May 1 hearing on the Cybersecurity and Infrastructure Security Agency’s notice of proposed rulemaking to establish an incident reporting regime for critical infrastructure owners and operators. Garbarino has called for the harmonization of incident reporting requirements and is highly critical of the SEC’s final rule that was approved in July 2023 and went into effect on Dec. 15. The chairman introduced on Nov. 14 a Congressional Review Act resolution to roll back the SEC’s rulemaking. The resolution is co-sponsored by House Homeland Security Chairman Mark Green (R-TN) and Reps. Anne Wagner (R-MO), Zachary Nunn (R-IA), Andy Barr (R-KY), Michael Lawler (R-NY) and Scott Fitzgerald (R-WI). It passed Financial Services in a 27-22 vote.
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