On January 10, 2023, the Financial Industry Regulatory Authority (FINRA) published its 2023 Report on its Examination and Risk Monitoring Program (the Report).1 The 75-page Report includes four new topic areas for 2023: (1) manipulative trading, (2) fixed income — fair pricing, (3) fractional shares — reporting and order handling, and (4) Regulation SHO.
https://datamatters.sidley.com/wp-content/uploads/sites/2/2022/09/sidleyLogo-e1643922598198.png00Andrew P. Blakehttps://datamatters.sidley.com/wp-content/uploads/sites/2/2022/09/sidleyLogo-e1643922598198.pngAndrew P. Blake2023-01-31 11:31:162023-01-31 11:32:38FINRA Issues 2023 Report on Its Examination and Risk Monitoring Program
The EU Digital Markets Act (DMA) is set to revolutionize the way in which so-called ‘Big Tech’ is regulated in the EU, shifting toward ex-ante rulemaking and away from traditional after-the-fact enforcement. The DMA imposes a stringent regulatory regime on large online platforms (so-called “gatekeepers”) and gives the European Commission (Commission) new enforcement powers, including an ability to impose severe fines and remedies for noncompliance.
https://datamatters.sidley.com/wp-content/uploads/sites/2/2022/09/sidleyLogo-e1643922598198.png00Ken Dalyhttps://datamatters.sidley.com/wp-content/uploads/sites/2/2022/09/sidleyLogo-e1643922598198.pngKen Daly2023-01-24 12:05:532023-01-24 12:05:53Unpacking Digital Data Laws Across Europe: Addressing the Digital Markets Act
In 2022, many if not most pharmaceutical, medical device, and other life sciences companies established strategies to innovate digital health technology complementary to their existing strategic focus. The digital transformation of the life sciences industry is still widely unfolding across the marketplace. In 2023 and beyond, the race is on to launch the next generation of digital health technologies to innovate the delivery of therapies to patients. (more…)
https://datamatters.sidley.com/wp-content/uploads/sites/2/2022/09/sidleyLogo-e1643922598198.png00Meenakshi Dattahttps://datamatters.sidley.com/wp-content/uploads/sites/2/2022/09/sidleyLogo-e1643922598198.pngMeenakshi Datta2023-01-23 09:07:012023-01-23 11:08:07Digital Health Transformation: A Practical Guide for Life Sciences Companies
On 17 January 2023, the new Network and Information Systems Security Directive (“NIS2 Directive”), which is aimed at establishing a minimum level of cybersecurity standards across the EU and is set to replace its predecessor (the NIS or “NIS1 Directive”), entered into force. The new NIS2 Directive aims to further harmonize and strengthen cybersecurity and resilience throughout the EU in response to a continued increase in digitization and rise in cyber (and in particular ransomware) threats – which is estimated to have reached a total cost of €5.5 trillion at the end of 2020 (double the figure of 2015) and continues to rise in the EU and globally notably due to ongoing geopolitical conflicts in Ukraine and Russia. (more…)
The bankruptcy court presiding over the Chapter 11 cases of digital asset platform Celsius Network LLC and its affiliates (Celsius) issued a key ruling on January 4, 2023 (the Decision), by concluding that a significant portion of digital assets held in Celsius’ customer accounts are property of the debtors’ estates, and holders of such accounts accordingly are unsecured creditors.1 The digital assets at issue in the Decision were held under Celsius’ “Earn” program, pursuant to which the digital assets were not segregated or held in custody but used freely by Celsius to generate investment returns, and were subject to contract terms stating that the digital assets belonged to Celsius.
https://datamatters.sidley.com/wp-content/uploads/sites/2/2022/09/sidleyLogo-e1643922598198.png00Teresa Wilton Harmonhttps://datamatters.sidley.com/wp-content/uploads/sites/2/2022/09/sidleyLogo-e1643922598198.pngTeresa Wilton Harmon2023-01-18 09:05:172023-01-18 09:13:03Celsius Bankruptcy Court Confirms That Customer Digital Assets Are Property of the Estate in Key Ruling
This Sidley Update highlights certain key disclosure considerations for preparing your annual report on Form 10-K for fiscal year 2022, including recent amendments to U.S. Securities and Exchange Commission (SEC) disclosure rules and other developments that impact 2022 Form 10-K filings, as well as certain significant disclosure trends and current areas of SEC focus for disclosures. As always, we invite you to contact us with any questions on these topics or any other SEC reporting and compliance matters.
https://datamatters.sidley.com/wp-content/uploads/sites/2/2022/09/sidleyLogo-e1643922598198.png00Sonia Gupta Barroshttps://datamatters.sidley.com/wp-content/uploads/sites/2/2022/09/sidleyLogo-e1643922598198.pngSonia Gupta Barros2023-01-17 09:07:282023-01-17 11:18:30Preparing Your 2022 Form 10-K: A Summary of Recent Key Disclosure Developments, Priorities, and Trends
On December 5, 2022, the Division of Examinations of the Securities and Exchange Commission (SEC) released a Risk Alert discussing its observations on Regulation S-ID (Reg. S-ID) from recent examinations of SEC-registered investment advisers and broker-dealers. Reg. S-ID, the SEC’s implementation of the identity theft red flags rule, requires SEC-regulated financial institutions and creditors to develop and implement an identity theft prevention program (Program) with written policies and procedures that are updated periodically. The requirements for the Program are outlined in the text of Reg. S-ID, and there are guidelines in Appendix A to assist firms in creating and maintaining a compliant Program. As Reg. S-ID applies to both SEC and Commodity Futures Trading Commission-regulated entities, financial institutions and creditors should consider their compliance programs accordingly.
On November 9, 2022, the New York Department of Financial Services (DFS) published its proposed second amendment to its cybersecurity regulations (23 NY CRR Part 500). This proposal follows a July 29 pre-proposal and comment period. The amendment is available for a sixty-day comment period – until January 9, 2023 – after which the agency may adopt final regulations or issue a further revised version.
https://datamatters.sidley.com/wp-content/uploads/sites/2/2022/09/sidleyLogo-e1643922598198.png00Alan Charles Raulhttps://datamatters.sidley.com/wp-content/uploads/sites/2/2022/09/sidleyLogo-e1643922598198.pngAlan Charles Raul2022-12-06 11:55:072022-12-06 12:17:19NY DFS Proposes New Class of Entities and More Detailed Regulations in Second Amendment to Cybersecurity Regulations
FINRA Issues 2023 Report on Its Examination and Risk Monitoring Program
On January 10, 2023, the Financial Industry Regulatory Authority (FINRA) published its 2023 Report on its Examination and Risk Monitoring Program (the Report).1 The 75-page Report includes four new topic areas for 2023: (1) manipulative trading, (2) fixed income — fair pricing, (3) fractional shares — reporting and order handling, and (4) Regulation SHO.
(more…)
Andrew P. Blake
Washington, D.C.
ablake@sidley.com
James Brigagliano
Washington, D.C.
jbrigagliano@sidley.com
W. Hardy Callcott
San Francisco
wcallcott@sidley.com
Neal E. Sullivan
Washington D.C.
nsullivan@sidley.com
Corin R. Swift
New York
corin.swift@sidley.com
Lara C. Thyagarajan
New York
lthyagarajan@sidley.com
Paul M. Tyrrell
Boston
ptyrrell@sidley.com
Michael D. Wolk
Washington, D.C.
mwolk@sidley.com
Michael J. Ogershok
Washington D.C.
mogershok@sidley.com
Unpacking Digital Data Laws Across Europe: Addressing the Digital Markets Act
The EU Digital Markets Act (DMA) is set to revolutionize the way in which so-called ‘Big Tech’ is regulated in the EU, shifting toward ex-ante rulemaking and away from traditional after-the-fact enforcement. The DMA imposes a stringent regulatory regime on large online platforms (so-called “gatekeepers”) and gives the European Commission (Commission) new enforcement powers, including an ability to impose severe fines and remedies for noncompliance.
(more…)
Ken Daly
Brussels
kdaly@sidley.com
Monika Zdzieborska
London
mzdzieborska@sidley.com
Bethany Wise
London
bwise@sidley.com
Anna Kubinska
London, Brussels
akubinska@sidley.com
Digital Health Transformation: A Practical Guide for Life Sciences Companies
In 2022, many if not most pharmaceutical, medical device, and other life sciences companies established strategies to innovate digital health technology complementary to their existing strategic focus. The digital transformation of the life sciences industry is still widely unfolding across the marketplace. In 2023 and beyond, the race is on to launch the next generation of digital health technologies to innovate the delivery of therapies to patients.
(more…)
Meenakshi Datta
Chicago
mdatta@sidley.com
Deeona R. Gaskin
Washington D.C.
dgaskin@sidley.com
Eva von Mühlenen
Geneva
emuhlenen@sidley.com
EU Publishes New NIS2 Cyber Directive Imposing Liability and Obligations on Senior Management
On 17 January 2023, the new Network and Information Systems Security Directive (“NIS2 Directive”), which is aimed at establishing a minimum level of cybersecurity standards across the EU and is set to replace its predecessor (the NIS or “NIS1 Directive”), entered into force. The new NIS2 Directive aims to further harmonize and strengthen cybersecurity and resilience throughout the EU in response to a continued increase in digitization and rise in cyber (and in particular ransomware) threats – which is estimated to have reached a total cost of €5.5 trillion at the end of 2020 (double the figure of 2015) and continues to rise in the EU and globally notably due to ongoing geopolitical conflicts in Ukraine and Russia. (more…)
William RM Long
London
wlong@sidley.com
Lauren Cuyvers
Brussels
lcuyvers@sidley.com
Matthias Bruynseraede
Brussels
mbruynseraede@sidley.com
Eleanor Oates
London
eoates@sidley.com
Celsius Bankruptcy Court Confirms That Customer Digital Assets Are Property of the Estate in Key Ruling
The bankruptcy court presiding over the Chapter 11 cases of digital asset platform Celsius Network LLC and its affiliates (Celsius) issued a key ruling on January 4, 2023 (the Decision), by concluding that a significant portion of digital assets held in Celsius’ customer accounts are property of the debtors’ estates, and holders of such accounts accordingly are unsecured creditors.1 The digital assets at issue in the Decision were held under Celsius’ “Earn” program, pursuant to which the digital assets were not segregated or held in custody but used freely by Celsius to generate investment returns, and were subject to contract terms stating that the digital assets belonged to Celsius.
(more…)
Teresa Wilton Harmon
Chicago
tharmon@sidley.com
Stephen E. Hessler
New York
shessler@sidley.com
Lilya Tessler
Dallas, Miami
ltessler@sidley.com
Dennis M. Twomey
Chicago
dtwomey@sidley.com
Allison Ross Stromberg
Chicago
astromberg@sidley.com
Preparing Your 2022 Form 10-K: A Summary of Recent Key Disclosure Developments, Priorities, and Trends
This Sidley Update highlights certain key disclosure considerations for preparing your annual report on Form 10-K for fiscal year 2022, including recent amendments to U.S. Securities and Exchange Commission (SEC) disclosure rules and other developments that impact 2022 Form 10-K filings, as well as certain significant disclosure trends and current areas of SEC focus for disclosures. As always, we invite you to contact us with any questions on these topics or any other SEC reporting and compliance matters.
(more…)
Sonia Gupta Barros
Washington, D.C.
sbarros@sidley.com
David C. Buck
Houston
dbuck@sidley.com
Carlton Fleming
San Francisco, Palo Alto
cfleming@sidley.com
Istvan A. Hajdu
ihajdu@sidley.com
John P. Kelsh
jkelsh@sidley.com
Michael T. Kohler
New York
mkohler@sidley.com
Andrea L. Reed
Chicago
andrea.reed@sidley.com
Robert A. Ryan
New York
rryan@sidley.com
Lindsey A. Smith
Chicago
lindsey.smith@sidley.com
Katie LaVoy
Chicago
klavoy@sidley.com
Claire H. Holland
Chicago
cholland@sidley.com
Tyler G. Aust
Chicago
taust@sidley.com
Lisa Holzman
Chicago
lholzman@sidley.com
Broker-Dealers and Investment Advisers Should Double-Check Their “Identity Theft” Programs: SEC Division of Examinations Issues Risk Alert on SEC’s Identity Theft Red Flags Rule, Regulation S-ID
On December 5, 2022, the Division of Examinations of the Securities and Exchange Commission (SEC) released a Risk Alert discussing its observations on Regulation S-ID (Reg. S-ID) from recent examinations of SEC-registered investment advisers and broker-dealers. Reg. S-ID, the SEC’s implementation of the identity theft red flags rule, requires SEC-regulated financial institutions and creditors to develop and implement an identity theft prevention program (Program) with written policies and procedures that are updated periodically. The requirements for the Program are outlined in the text of Reg. S-ID, and there are guidelines in Appendix A to assist firms in creating and maintaining a compliant Program. As Reg. S-ID applies to both SEC and Commodity Futures Trading Commission-regulated entities, financial institutions and creditors should consider their compliance programs accordingly.
(more…)
Colleen Theresa Brown
Washington, D.C.
cbrown@sidley.com
John I. Sakhleh
Washington, D.C.
jsakhleh@sidley.com
Sasha P. Hondagneu-Messner
New York
shondagneumessner@sidley.com
NY DFS Proposes New Class of Entities and More Detailed Regulations in Second Amendment to Cybersecurity Regulations
On November 9, 2022, the New York Department of Financial Services (DFS) published its proposed second amendment to its cybersecurity regulations (23 NY CRR Part 500). This proposal follows a July 29 pre-proposal and comment period. The amendment is available for a sixty-day comment period – until January 9, 2023 – after which the agency may adopt final regulations or issue a further revised version.
(more…)
Alan Charles Raul
Washington, D.C., New York
araul@sidley.com
Colleen Theresa Brown
Washington, D.C.
cbrown@sidley.com
Vishnu Tirumala
Washington, D.C.
vtirumala@sidley.com
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