American boutique law firm Cole-Frieman & Mallon has introduced a cybersecurity law practice for the asset management industry.  

The practice will enable investment managers to comply with the US Securities & Exchange Commission’s upcoming cybersecurity rules for hedge funds and asset management companies.

SEC’s new Cybersecurity Risk Management Rule, which is expected to be opened for voting in April this year, requires stakeholders to include additional cybersecurity policies, procedures and controls.

The rule also requires the reporting of important cybersecurity incidents to the SEC, new investor disclosure, among others.

Cole-Frieman & Mallon’s newly launched practice has been designed to help its clients with pre-breach compliance measures as well as post-breach disclosure and reporting obligations, stated the firm that caters to the investment management sector.

It will be led by Cole-Frieman & Mallon’s ex-partner and cybersecurity expert John Araneo, who has returned to the company after a gap of around five years.

Cole-Frieman & Mallon managing partner Karl Cole-Frieman said: “With the clear movement toward more onerous cybersecurity rules for asset managers, our clients need informed legal counsel in this complex and sensitive area.

“John Araneo is far and away the most qualified attorney to address that need, and we’re overjoyed that he will be bringing his innovative practice to Cole-Frieman & Mallon.”

Araneo said: “Regulatory change is happening, whether the most recent iteration of the SEC’s cyber rule passes or not.

“Investment managers should begin preparing now, to avoid the anticipated regulatory examinations, cyber sweeps, and enforcement actions, and also to satisfy investors’ due diligence focus on cyber.”

In June last year, Cole-Frieman & Mallon announced the appointment of Alex Yastremski as partner to head its cryptocurrency and digital asset practice.