DORA – ESAs Publish Draft Technical Standards on ICT Subcontracting
On 26 July 2024, the European Supervisory Authorities (EBA, EIOPA and ESMA, collectively, the “ESAs”) published their joint final report on the draft Regulatory Technical Standards (“RTS”) specifying the elements that a financial entity should determine and assess when subcontracting ICT services supporting critical or important functions under Article 30(5) of the Digital Operational Resilience Act (“DORA”). The RTS are intended to assist with the enhancement of the digital operational resilience of the financial services sector by improving in-scope entities’ ICT risk management, specifically with respect to the issue of ICT subcontracting.
UK proposes New Cyber Security and Resilience Bill to Boost the UK’s Cyber Defences
During the King’s Speech on 17 July 2024, the newly appointed UK Prime Minister announced the UK Government’s intention to introduce a new Cyber Security and Resilience Bill to strengthen the UK’s defences against the global rise in cyberattacks and to protect the UK’s critical infrastructure. In background briefing notes published together with the King’s Speech, the UK Government stated that the new Cyber Security and Resilience Bill will “strengthen our defences and ensure that more essential digital services than ever before are protected.” According to the briefing notes, the Cyber Security and Resilience Bill intends to address the concern that the UK has not kept up-to-date with recent legislative advancements made by the EU in the cybersecurity space, resulting in the UK being “comparably more vulnerable.” Although the form of the proposed Cyber Security and Resilience Bill has yet to be released, the UK Government has indicated that it plans to introduce the bill in the coming months.
An Artificial Intelligence, Privacy, and Cybersecurity Update for Indian Companies Doing Business in the United States and Europe
Pivotal shifts have occurred in global data privacy, artificial intelligence (AI), and cybersecurity from executives facing more pressure to monitor their organizations’ cybersecurity operations, to an unprecedented wave of consumer data privacy laws and rapid advancements in AI technology use and deployment. Indian organizations should establish best practices to address these new (and emerging) laws, regulations, and frameworks.
Cybersecurity Takeaways From White House Tech Report
On Feb. 26, the White House’s Office of the National Cyber Director (ONCD), released a report on how technology manufacturers and software developers can improve the cybersecurity posture of the U.S. This report, “Back to the Building Blocks: A Path Toward Secure and Measurable Software,” aligns with the Biden administration’s current, intense focus on combatting ever-increasing cyberthreats through software development and software manufacturer accountability. In this article, published by Law360 on March 26, Sidley lawyers Alan Charles Raul, Stephen McInerney and Vishnu Tirumala discuss the ONCD report and provide key take-aways for software developers and manufacturers, their senior management, and boards.
FTC Proposes Significant and Sweeping Changes to COPPA and Requests Public Comment
On January 11, 2024, the Federal Trade Commission (“FTC”) published its Notice of Proposed Rule Making (“NPRM”) seeking to update the FTC’s Children’s Online Privacy Protection Act (“COPPA”) Rule in the Federal Register. Among other things, the proposed changes would require more granular privacy notices, require fairly detailed identification of, and parental consent to, third-party data sharing (including targeted advertising), expand the scope of personal information subject to COPPA, make it easier for parents to provide consent via text message, clarify various requirements around EdTech, including school authorization for parental consent, and impose significant new programmatic information security and data retention requirements.
UK Publishes Cyber Governance Code of Practice for Consultation
On 23 January 2024, the UK government published its draft Cyber Governance Code of Practice (the “Code”) to help directors and other senior leadership boost their organizations’ cyber resilience. The draft Code, which forms part of the UK’s wider £2.6bn National Cyber Strategy, was developed in conjunction with several industry experts and stakeholders – including the UK National Cyber Security Centre. The UK government is seeking views from organizations on the draft Code by 19 March 2024.
New Export Controls on Advanced Computing and Semiconductor Manufacturing: Five Key Takeaways
On October 25, 2023, the U.S. Department of Commerce Bureau of Industry and Security (BIS) published updated export controls on advanced computing items and semiconductor manufacturing equipment under the Export Administration Regulations (EAR). Specifically, BIS published two interim final rules that revise and expand on the restrictions implemented in the initial interim final rule issued on October 7, 2022 (October 7, 2022 rule).1
U.S. SEC Division of Exams Announces 2024 Examination Priorities
On October 16, 2023, the U.S. Securities and Exchange Commission (SEC) Division of Examinations (EXAMS or Division) issued its annual examination priorities, which, for the first time, was published at the start of the SEC’s fiscal year to “better inform investors and registrants of key risks, trends, and examination topics” the Division intends to focus on in the coming year.1
SEC’s Cybersecurity Disclosure Rules Are Here. Is Your Company Ready to Comply?
Companies are facing more attacks on their information systems. And, as their cyber risk skyrockets, the SEC has stepped in with new regulations, telling businesses what to disclose about these incidents — and requiring detailed disclosures on cyber risk management more broadly. With the deadline for compliance fast approaching, businesses are scrambling to mitigate their legal risk and comply with regulations that some say may be an overreach.
U.S. SEC Public Company Cybersecurity Disclosure Regulation Finalized With Swift Effective Date
On July 26, 2023, the U.S. Securities and Exchange Commission finalized its rule on Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure by Public Companies (the Final Rule), which will become effective 30 days following publication in the Federal Register. The Final Rule applies to all public companies subject to the reporting requirements of the Securities Exchange Act of 1934, including foreign private issuers, smaller reporting companies, and business development companies, and will require disclosure of material cybersecurity incidents on Form 8-K and Form 20-F and periodic disclosure of cybersecurity risk management, strategy, and governance in annual reports on Form 10-K and Form 20-F.
