In today’s world, cybersecurity breaches and threats are pervasive concerns for any business entity, without exception. Working from home arrangements due to COVID-19 constraints only magnify the risk and create further vulnerabilities for companies. Companies should be aware of (1) the key cyber threats they face, (2) the consequences of a breach, and (3) the … Continue Reading
Privacy and cybersecurity remain top priorities for regulators and companies alike, as the threats posed by large-scale data breaches and other cyber incidents show no signs of waning. Companies and their counsel must monitor privacy and data security-related enforcement trends, new laws and regulations, and key emerging issues to mitigate risks and minimize potential liability. … Continue Reading
With the spread of the novel coronavirus (COVID-19), cybersecurity criminals and scammers are ramping up their efforts to target vulnerable employers and workforces. The FTC announced today that since January they have received more than 7,800 fraud complaints from consumers related to the COVID-19 pandemic. But the FTC isn’t slowing down either. Even with the … Continue Reading
With less than a month to go until the UK is due to leave the EU (at 11pm GMT/12pm CET on 29 March 2019), there is still much uncertainty as to whether, and if so how, the UK will exit the EU (commonly dubbed “Brexit”). In light of this uncertainty we outline what will happen, … Continue Reading
In September 2018, the Securities and Exchange Commission (“SEC”) announced that broker-dealer and investment adviser Voya Financial Advisors Inc. (“VFA”) agreed to pay $1,000,000 to settle charges related to alleged failures in its cybersecurity policies and procedures relating to a data breach that compromised the personal information of 5,600 customers. The SEC charged VFA with … Continue Reading
The New York Department of Financial Services cybersecurity regulation 23 NYCRR 500 (the “Regulation”) came into effect in March 2017 and established four staggered compliance deadlines for its various requirements. By the third deadline of September 3, 2018, Covered Entities are required to be in compliance with sections 500.06 (audit trails), 500.08 (application security), 500.13 … Continue Reading
The SEC’s new Cyber Unit released its first cyber-disclosure enforcement action. We recently authored an article on the key takeaways of the SEC’s new cybersecurity initiatives. Read the full New York Law Journal article here.… Continue Reading
In November 2017, New York Attorney General Eric Schneiderman introduced the Stop Hacks and Improve Electronic Data Security (SHIELD) Act (the “Act”) in the state’s Legislature. Companies – big and small – that collect information from New York residents should take note, as the Act could mean increased compliance costs, as well as potential enforcement actions for those that … Continue Reading
On February 21, 2018, the Securities and Exchange Commission (SEC) issued an interpretive Commission Statement and Guidance on Public Company Cybersecurity Disclosures (the “Guidance”) to assist public companies in meeting their cybersecurity disclosure requirements under the federal securities laws. The Guidance notes that, as reliance on networked systems and the Internet have increased, so too have the risks … Continue Reading
State financial regulators in Colorado and Vermont recently adopted cybersecurity rules that apply to broker-dealers and investment advisers regulated by those states as well as certain other “securities professionals” in Vermont. The broad definition of “securities professional” in Vermont’s regulation (“any person providing investment-related services in Vermont”) could include entities that do not generally consider … Continue Reading
China’s new Cybersecurity Law is one of the most important pieces of privacy and cybersecurity legislation we’ll see this year, and companies of all sizes need to be aware of its requirements – regardless of whether or not they have a physical presence in China. The new law goes into effect on June 1, 2017, … Continue Reading
In April 2017, the New York Department of Financial Services (the “DFS”) released guidance on interpreting 23 NYCRR Part 500, its recently promulgated regulation that requires banks, insurance companies and other financial services institutions regulated by the DFS to adopt broad cybersecurity programs (the “Regulation”), in the form of a frequently asked questions (“FAQ”) document … Continue Reading
On February 16, 2017, the New York Department of Financial Services (the “DFS”) released a final version (the “Final Regulation”) of its proposed regulation, previously released in an earlier revised form on December 28, 2016, that would require banks, insurance companies and other financial services institutions regulated by the DFS to adopt broad cybersecurity protections … Continue Reading
As we previously reported, in December 2016 the New York Department of Financial Services (the “DFS”) announced that it was revising its proposed regulation that would require banks, insurance companies and other financial services institutions regulated by the DFS to adopt broad cybersecurity protections (the “Original Proposal”). On December 28, 2016, the DFS released a … Continue Reading
As we previously reported, in September 2016 the New York Department of Financial Services (the “DFS”) proposed a regulation that would require banks, insurance companies and other financial services institutions regulated by the DFS to adopt broad cybersecurity protections (the “Proposal”). The comment period for the Proposal closed in mid-November. In late December, a DFS … Continue Reading
On December 2, 2016, the Federal Communications Commission (“FCC”) published its Report and Order entitled “Protecting the Privacy of Customers of Broadband and Other Telecommunications Services” (the “Order”) as a final rule in the Federal Register, adopting rules applicable to Internet service providers (“ISPs”) intended to protect the privacy of broadband consumers. Despite the publication … Continue Reading
On September 13, 2016, New York Governor Andrew Cuomo announced that the New York Department of Financial Services (the “DFS”) proposed a regulation that would require banks, insurance companies, and other financial services institutions regulated by the DFS to establish and maintain a cybersecurity program (the “Proposal”). If the Proposal is adopted, New York would … Continue Reading
The dream of hack-proof communication just got a little closer to reality. On August 16, 2016, China launched the world’s first “quantum satellite,” a project the Chinese government hopes will enable it to build a communication system incapable of being hacked. Such a system, if perfected, would allow for encrypted communications between any two devices … Continue Reading
This month, the Federal Trade Commission (FTC) issued guidance on privacy and security best practices for health-related mobile apps, such as fitness apps connected with wearables, diet and weight loss apps, and health insurance portals. At the same time, the FTC unveiled an interactive tool designed to direct health app developers to federal laws and … Continue Reading
Results from the SEC’s First Round of Cybersecurity Examinations. On February 3, 2015, the OCIE published a risk alert summarizing its findings from its examinations of over 100 registered investment advisers and broker-dealers. The examinations were conducted as part of the OCIE’s cybersecurity examination initiative, announced in April 2014, to assess cybersecurity preparedness in the … Continue Reading
On September 22, 2015, the Securities and Exchange Commission (SEC) announced the settlement of an enforcement action against a St. Louis-based registered investment adviser (Adviser) brought under Rule 30(a) of Regulation S-P (Safeguards Rule). The SEC Order charged the Adviser with violating the Safeguards Rule by failing to adopt written cybersecurity policies and procedures reasonably designed to … Continue Reading
On September 15, 2015, the Office of Compliance Inspections and Examinations (OCIE) of the Securities and Exchange Commission (SEC) issued a Risk Alert announcing its second round of examinations of registered investment advisers and broker-dealers under its cybersecurity examination initiative.… Continue Reading
This client alert was prepared by my colleagues Robert Leonard, Michael Mavrides and Christopher Wells. On April 28, the Securities and Exchange Commission (SEC) released a Guidance Update addressing the importance of cybersecurity and the steps registered investment advisers (and registered investment companies) may wish to consider in light of growing cybersecurity risks. This Guidance Update … Continue Reading
Data security is big news. And so is the Federal Trade Commission (“FTC”). Put the two together in a crucible of litigation, and it is sure to be a blockbuster. That is what the closely-watched case FTC v. Wyndham, now pending before the Third Circuit Court of Appeals, is shaping up to be.… Continue Reading
