By

Geeta Malhotra

19 February 2018

Cybersecurity Identified as an SEC OCIE Examination Priority for 2018

On February 7, 2018, the SEC’s Office of Compliance Inspections and Examinations (OCIE) released its 2018 National Exam Program Examination Priorities (2018 Exam Priorities) and, once again, identified cybersecurity as one of its main areas of focus.  According to OCIE, each of its examination programs will prioritize cybersecurity. The 2018 Exam Priorities include five main focus areas:  (1) cybersecurity; (2) compliance and risks in critical market infrastructure; (3) matters of importance to retail investors, including seniors and those saving for retirement; (4) oversight of the Financial Industry Regulatory Authority (FINRA) and Municipal Securities Rulemaking Board (MSRB); and (5) anti-money laundering programs.  For an in-depth discussion regarding the entirety of the 2018 Exam Priorities, see Sidley’s previous analysis here(more…)

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25 January 2018

Protecting Privilege in the Aftermath of a Data Breach

On Jan. 3, the United States Court of Appeals for the Sixth Circuit issued a decision that effectively required a company to turn over materials relating to a privileged forensic data breach investigation because, the court concluded, the company had implicitly waived privilege when it disclosed certain of the forensic firm’s conclusions in response to a discovery request. The Sixth Circuit’s decision emphasizes the need for caution by litigants wishing to raise a defense that relies on privileged investigations and reports, including third-party forensic reports, or otherwise disclosing the conclusions of such investigations and reports. (more…)

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13 February 2017

Sidley Perspectives on M&A and Corporate Governance: Cybersecurity M&A Due Diligence and Protecting Privilege

The potential liability from a material cyber-attack is wide-ranging. Accordingly, companies that experience network intrusions, system disruptions or unauthorized access to information databases must be prepared for a variety of potential consequences, each attended by its own costs…[read more]

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26 September 2016

CFTC Issues Final Cybersecurity Rules on System Safeguards Testing Requirements

On September 8th, the Commodity Futures Trading Commission (“CFTC”) approved amendments (“Final Rules”) to its ”system safeguards rules.” The system safeguards rules obligate designated contract markets, swap execution facilities, and swap data repositories (for convenience, collectively referred to as “Exchanges”) as well as derivatives clearing organizations (“Clearinghouses”) to have in place cybersecurity programs of risk analysis and oversight. As part of such a program, Exchanges and Clearinghouses (collectively, “Covered Entities”) must conduct testing and review sufficient to ensure their automated systems are reasonably reliable and secure, and have adequate scalable capacity.

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