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Enforcement

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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13 February 2018

SEC Office of Compliance Inspections and Examinations Publishes 2018 Exam Priorities

On February 7, 2018, the Office of Compliance Inspections and Examinations (OCIE) of the U.S. Securities and Exchange Commission (the Commission) released its annual National Exam Program Examination Priorities (Exam Priorities).1 As has been widely reported, the Exam Priorities’ general focus areas include:

  • retail investors
  • compliance and risks in critical market infrastructure
  • oversight of the Financial Industry Regulatory Authority (FINRA) and Municipal Securities Rulemaking Board (MSRB)
  • cybersecurity
  • anti-money laundering (AML) programs

The majority of these Exam Priorities are not surprising because they reflect the Commission’s continued focus on retail investors, conflicts of interest, fee disclosure, cybersecurity, cryptocurrency and AML programs.2 The Exam Priorities can serve as a roadmap for firms to assess their policies, procedures and compliance programs, and to prepare for OCIE exams. This post outlines and elaborates on each of the Exam Priorities. (more…)

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09 January 2018

Internet of Toys Enforcement: VTech Agrees to COPPA Settlement

On January 8, the FTC announced a settlement with VTech (a maker of electronic children’s toys) for violations of COPPA, adding to the regulatory activity mounting in the last few years around the Internet of Toys.  The company agreed to pay $650,000 to settle allegations that its Kid Connect app and its Learning Lodge platform collected personal information from almost 3,000,000 children without providing direct notice and obtaining their parent or guardian’s consent.  (more…)

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02 January 2018

Privacy and Cybersecurity Top 10 for 2018

This past year was marked by ever more significant data breaches, growing cybersecurity regulatory requirements at the state and federal levels and continued challenges in harmonizing international privacy and cybersecurity regulations. We expect each of these trends to continue in 2018.

As we begin this New Year, here is list of the top 10 privacy and cybersecurity issues for 2018: (more…)

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27 December 2017

Hong Kong to Further Regulate Drones

With the rise in drone usage for both commercial and recreational activities, air safety regulators around the world have increasingly focused on the impact of drones (otherwise known as unmanned aircraft systems or UAS) on flight safety and efficiency. Consistent with calls by the International Air Transport Association (IATA) for more oversight, Hong Kong’s Civil Aviation Department (CAD) recently announced plans to step up the regulation of commercial and recreational drones.

(more…)

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18 December 2017

DFARS Cyber Compliance And Potential For FCA Risk

*This article first appeared in Law360 on December 18, 2017.

For well over a year, defense contractors have had New Year’s Eve 2017 circled on their calendars, and not because they love the “auld lang syne” and a good glass of champagne. (Or at least not only for those reasons.) Dec. 31, 2017, is the deadline for when covered contractors must comply with the U.S. Department of Defense’s new Defense Federal Acquisition Regulation Supplement (DFARS) cybersecurity requirements. This holiday season contractors are thus making their lists and checking them twice in order to ensure that they will be compliant by the end of the year. And this intense focus is well warranted. The DOD is deeply committed to protecting its information, and the requirements are an important step in that regard.

But for all of the focus on Dec. 31, contractors must also remember that the focus on compliance must remain into the New Year — and beyond. New technologies will emerge. Contractors will buy new systems and hire new employees. And all the while, internal security teams will be trying to stay a step ahead of hackers and “white hat” security researchers. In short, despite contractors’ best efforts, gaps may be identified at any time. Moreover, these gaps may carry with them real consequences — not only the possibility of contract termination, but also the risk of costly and disruptive False Claims Act investigations and lawsuits, with the specter of treble damages, and the possibility of suspension and debarment, lurking. It is thus crucial that contractors continue to be vigilant about the regulations, and take steps to enable them to demonstrate their vigilance and compliance, in order to best position themselves to avoid liability.

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14 December 2017

Article 29 Working Party Releases GDPR Guidance on Consent and Transparency

On 28 November 2017, the Article 29 Working Party (the “WP29”) published detailed draft guidelines on consent under the EU General Data Protection Regulation (the “GDPR”), which is to come into effect on 25 May 2018. The draft guidance has been submitted for public consultation for a six week period before being adopted.

The WP29 guidance on consent (“Consent Guidelines”) provides an analysis of the notion of consent under the GDPR as well as practical guidance for organisations on the requirements to obtain and demonstrate valid consent under the GDPR. (more…)

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21 November 2017

Jamaica’s New Privacy Protection Bill

On 10 October 2017, Jamaica introduced into its House of Parliament a comprehensive Bill for privacy and data protection, entitled “An Act to Protect the Privacy of Certain Data and for Connected Matters.”  The new law would cover personal data, including data in an “accessible record” such as a health record or an educational record.  If passed, the new law will be named the “Data Protection Act, 2017.”  (more…)

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13 November 2017

U.S. Consumer Financial Protection Bureau’s Principles for Data Aggregation Services Could Have Broad Implications

On Oct. 18, 2017, the Consumer Financial Protection Bureau (CFPB) released a set of consumer protection principles (Principles) designed to protect consumer interests in the market for services built around consumer-approved use of financial information. The Principles are targeted to so-called “data aggregation” or “screen scraping” services that collect customer information in order to provide financial planning or other services. Over the past few years, data aggregation services and banks have struggled to develop the right model for sharing customer account data. The Principles issued by the CFPB seek to provide a potential data-sharing model for banks and data aggregation services while protecting consumer interests.

(more…)

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