Financial Regulatory Forum

INSIGHT: SEC cyber-risk exam guidelines set template for firms

By Guest Contributor
May 6, 2014

By Abel Picardi, Compliance Complete

NEW YORK, May 6, 2014 (Thomson Reuters Accelus) - As the U.S. Securities and Exchange Commission tightens its supervision of technology security on Wall Street, with plans to examine cybersecurity preparedness at more than 50 broker-dealers and investment advisers, the agency has released a checklist intended to help firms review their controls whether or not they come into the crosshairs of examiners.

Cybersecurity and the board: avoiding personal liability — Part III of III: Policies and procedures

By Guest Contributor
August 8, 2013

By Steven L. Caponi, Thomson Reuters Accelus contributing author

NEW YORK, Aug. 8 (Thomson Reuters Accelus) - In the previous two installments of this series (Part I and Part II), we discussed the fiduciary obligation of officers/directors to proactively address cyber security and the legal basis for holding them personally liable if they fail to do so. This third and final article explores the more difficult task of deciding which best practices directors should consider adopting. Because each enterprise faces unique challenges, this process requires that directors understand their company’s cyber security risk profile and the options available for mitigating the risk.

Cybersecurity and the board of directors: avoiding personal liability — Part II of III

By Guest Contributor
August 6, 2013

By Steven L. Caponi, Compliance Complete contributing author

NEW YORK, Aug. 6 (Thomson Reuters Accelus) - The first article in this three-part series discussed how legal principles governing directors’ fiduciary duties may be applied to cybersecurity and the risks posed by cyber attacks. To summarize, Delaware’s corporate law places an affirmative obligation on fiduciaries to keep informed of serious risks facing the enterprise. The failure to exercise appropriate oversight in the face of known risks constitutes a breach of the duty of loyalty, a breach that cannot be exculpated under 8 Del. C. §102(b)(7).

Cybersecurity and the board of directors: avoiding personal liability – Part I of III

By Guest Contributor
July 25, 2013

By Steven L. Caponi, Contributing author for Compliance Complete

NEW YORK, July 25 (Thomson Reuters Accelus) - The likelihood of a cybersecurity breach hitting one’s company in the near future is as certain as will be the resulting drop in shareholder value, finger pointing, fines, regulatory headaches and civil litigation alleging the board was asleep at the wheel in the face of a known danger. In a letter to the Chairman of the Securities and Exchange Commission from five U.S. senators, including Commerce committee Chairman Jay Rockefeller, the Senators noted:

Cybersecurity in Canada: Finance industry, government seek ways to share data

By Guest Contributor
July 18, 2013

By Daniel Seleanu, Compliance Complete

TORONTO/NEW YORK, July 18 (Thomson Reuters Accelus) - More cooperation with government intelligence agencies would improve the Canadian financial industry’s cyber security capabilities, regulatory and industry experts told Thomson Reuters. Financial institutions have deployed defences, but face considerable threat from cyber-criminals intent on committing fraud, stealing sensitive information, and disrupting their networks.

Financial cybercrime a national security threat, U.S. Justice Department official warns

By Guest Contributor
September 21, 2012

By Julie DiMauro and Stuart Gittleman

NEW YORK, Sept. 21 (Thomson Reuters Accelus) - U.S.-based financial services institutions that don’t tell law enforcement agencies about having been victimized by cybercrime are compromising the nation’s security as well as that of their firms, a top Department of Justice official warned this week.

Disclosures 2012: level of cyber-security risk disclosures varies after new SEC guidance

By Guest Contributor
April 6, 2012

By Robert Kalb

NEW YORK, April 6 (Business Law Currents) – Ever-growing reliance on technology in customer interactions, proprietary data storage and even normal business operations is creating increased risk for companies working to ensure these systems remain uncompromised. As threats of cyber-attacks expand across industries, and given the potential material impact on operations, the security of these digital technologies from internal and external threats is vital.