From: JDSupra Business Advisor
by David Gershon | Manatt, Phelps & Phillips, LLP
Why it matters
Stating that the New York Department of Financial Services believes cybersecurity to be one of the most critical issues facing the financial world today, the agency sent a letter to state and federal regulators outlining potential new cybersecurity regulation requirements. The proposed regulations would require regulated entities to adopt cybersecurity policies with respect to their own operations as as well third-party service providers. The regulations would also require regulation entities to appoint a chief information security officer, conduct an annual security audit and immediately notify DFS of significant cybersecurity incidents.
In addition to outlining proposed regulations, the letter may signal DFS’s expectations with respect to cybersecurity programs, even absent formal rulemaking.
Detailed discussion
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