After having received over 150 comments on proposed cybersecurity regulations, the New York Department of Financial Services will delay implementation and initiate a new round of notice and comment on a further revised version of cybersecurity regulations. As we reported previously, NYDFS proposed new cybersecurity regulations for the financial sector in September of this year, and the comment period closed mid-November. NYDFS previously announced that the new rules would be effective January 1, 2017 and that covered entities would have 180 days to comply. Reuters reports that NYDFS will now publish a further revised version of proposed regulations on December 28 for public comment with a new effective date of March 1, 2017.
On December 19, 2016 the Joint Committee of the European Supervisory Authorities (“ESAs”) launched a public consultation (the “Consultation”) on the potential benefits and risks of Big Data for consumers and financial firms to determine whether any regulatory or supervisory actions will be required. The ESAs are three EU-wide supervisory authorities, the European Banking Authority (“EBA”), European Securities and Markets Authority (“ESMA”) and the European Insurance and Occupational Pensions Authority (“EIOPA”).
On October 25, 2016 the European Commission (the “Commission“) adopted its 2017 Work Programme (the “Work Programme”) which sets out what the Commission intends to do over the next 12 months. The Work Programme is the third to be presented under Jean-Claude Junker’s presidency of the Commission and will also be the first Work Programme to be adopted following consultation with the European Parliament (the “Parliament“) and the European Council (the “Council“).
The future of privacy and cybersecurity under President-elect Trump – with a Republican-controlled House and Senate – is far from certain, but his campaign comments indicate an emphasis on robust cybersecurity, perhaps with more openness to both offensive as well as defensive initiatives.
On Oct. 19, the Board of Governors of the Federal Reserve System (the Board), the Office of the Comptroller of the Currency (the OCC) and the Federal Deposit Insurance Corporation (the FDIC, and collectively with the Board and the OCC, the Agencies) issued a joint advanced notice of proposed rulemaking (ANPR) inviting comment regarding enhanced cyber risk management standards for large and interconnected entities under their supervision and those entities’ service providers. As financial technology continues to advance, the largest, most complex financial institutions have relied more and more on technology to carry out their banking activities and to provide critical services to the financial sector and the U.S. economy. In the event of a cyber attack on a covered entity, the ANPR is intended to enhance the covered entity’s ability to continue to function and to reduce the overall impact on the financial system resulting from interconnectedness.
Artificial intelligence has been hailed for the promise of breakthrough innovations but also the object of concern by such notable voices as Bill Gates, Stephen Hawkins, and Elon Musk. To explore the issues presented, the White House conducted a review of the opportunities, risks, and regulatory implications of artificial intelligence. Last week, the White House released a comprehensive report, Preparing for the Future of Artificial Intelligence, reflecting a culmination of its review, including public comment and several public workshops that were co-hosted by the White House Office of Science and Technology Policy with the National Economic Council, as well as non-profit and academic organizations.