CISO Global Seeks SEC Clarity on Investor-Consent Framework for Securities Lending

Scottsdale, Ariz. — April 8, 2026 — CISO Global, Inc. (Nasdaq: CISO), a provider of AI-powered cybersecurity software, managed cybersecurity, and compliance solutions, has announced a significant regulatory initiative that could reshape shareholder rights and securities lending practices. The company has filed a no-action request with the U.S. Securities and Exchange Commission (SEC) seeking clarity for a proposed Investor-Consent Share Loan Program. This program is designed to give shareholders direct control over whether their shares are made available for securities lending.

Key Points of the Report

• Regulatory Initiative: CISO Global’s request to the SEC aims to introduce a framework where shareholders must affirmatively opt-in before their shares are lent out for securities lending purposes.
• Transparency & Investor Choice: The move follows CISO’s review of short-volume data, publicly reported fails-to-deliver in late 2025, and shareholder-record discrepancies. The company believes these issues underscore the need for greater transparency and explicit investor consent.
• Legal Counsel: The filing is supported pro bono by Nick Morgan (President, Investor Choice Advocates Network – ICAN) and Mark Hiraide, both experienced securities attorneys.
• No Allegations of Misconduct: CISO specifically notes that the no-action request does not allege any unlawful activity by intermediaries or market participants.
• Framework Features:
  • Shareholders would need to opt-in before their shares are treated as available for lending.
  • Consent can be withdrawn at any time, subject to applicable settlement and recall mechanics.
  • The program would operate through existing shareholder-intermediary relationships and would not change existing clearance and settlement infrastructure (such as DTC, NSCC).
• SEC Process: The company is asking SEC Staff to confirm that they would not recommend enforcement action under Rule 17Ad-20 solely because CISO adopts this investor-consent framework.
• Market Transparency: CISO asserts that their proposal aligns with regulatory principles for shareholder protection and market transparency.

Potential Price-Sensitive Information for Shareholders

• Empowering Shareholders: If the SEC grants the requested relief, CISO shareholders would gain meaningful control over whether their shares are lent, potentially limiting shares available for short selling. This could impact short interest in CISO stock, potentially reducing downward price pressure from short sellers.
• Market Structure Implications: The proposal, if implemented, could set precedent for other public companies, potentially making CISO a leader in shareholder rights and influencing broader market practices.
• Risks and Uncertainty: There is no guarantee that the SEC will grant the requested relief or that the framework can be implemented as envisioned. Regulatory developments, operational constraints, and market conditions may affect the program’s feasibility.
• Forward-Looking Statements: The news release includes forward-looking statements regarding the no-action request, the potential timing and substance of any SEC response, implementation of the framework, and expected benefits for shareholders and market transparency.

Statements from CISO and ICAN Leadership

David Jemmett, CEO, CISO Global:
“This is about one simple principle: informed consent. If a shareholder’s shares may be used in lending activity that can facilitate short selling, that shareholder should have the right to know, the right to decide, and the right to say no. We are asking the SEC Staff for clarity on a straightforward question: whether we can give our shareholders a meaningful, affirmative voice before their shares are made available for lending.”

Nick Morgan, President, ICAN:
“CISO is using an established SEC process to seek clarity on a narrow but important question: whether investors can be given a meaningful, affirmative voice before their shares are made available for lending through existing intermediaries. We believe this consent-first framework is consistent with existing regulatory principles and serves the interests of beneficial owners and market transparency.”

About CISO Global

CISO Global, Inc. (Nasdaq: CISO), headquartered in Scottsdale, Arizona, provides AI-powered cybersecurity software, managed cybersecurity, and compliance solutions designed to protect organizations from evolving cyber threats and support their compliance obligations. More information is available at ciso.inc and ir.ciso.inc/investor-alerts.

Conclusion

This regulatory initiative represents a potentially significant development for CISO shareholders and could influence broader market practices concerning securities lending and short selling. If the SEC grants CISO’s request, shareholders may see increased rights and protections, which could impact share supply for lending and short selling — possibly affecting share price dynamics. Investors should monitor SEC responses and CISO’s further announcements closely, as the outcome may be material to the company’s stock and market reputation.

Contact Information

Media Inquiries:
Debra Gallington
[email protected]
(480) 389-3444

Disclaimer: This article contains information based on CISO Global’s press release and regulatory filings. The initiative discussed is subject to SEC review and approval, and there is no guarantee of implementation. Forward-looking statements are subject to risks and uncertainties. Readers should not construe this article as investment advice. Please consult your financial advisor before making investment decisions.

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