by Greg D. Andres, Uzo Asonye, Martine M. Beamon, Robert A. Cohen, Daniel S. Kahn, Tatiana R. Martins, Paul S. Mishkin, Fiona R. Moran, Paul J. Nathanson, and David B. Toscano
On May 18, the U.S. Court of Appeals for the Fifth Circuit ruled that the SEC’s administrative proceedings are unconstitutional on three independent grounds. The decision could potentially have a significant impact on the constitutionality of administrative adjudications by other federal agencies as well.
by Greg Andres, Matthew Bacal, Martine Beamon, Angela Burgess, Robert Cohen, Gabriel Rosenberg, Margaret Tahyar, James Haldin, Matthew Kelly, and Daniel Newman
The New York DFS issued new guidance regarding a covered entity’s reliance on an affiliate’s cybersecurity program. The guidance explains DFS’s view that, when a covered entity relies on an affiliate’s program, DFS has authority to examine the affiliate’s program.
Since 2017, New York’s Cybersecurity Regulation, 23 N.Y.C.R.R. Part 500, has required any “Covered Entity”—that is, any entity regulated by New York’s Department of Financial Services (DFS)—to maintain a risk-based cybersecurity program consistent with certain prescriptive technical and procedural requirements. These requirements, the DFS has maintained, are designed to ensure that the Covered Entity’s program adequately protects the Covered Entity’s information systems and the nonpublic information maintained on them.
by Greg Andres, Uzo Asonye, Martine Beamon, Robert Cohen, Daniel Kahn, Tatiana Martins, Paul Marquardt, Fiona Moran, Paul Nathanson, and Daniel Stipano
Principal Associate Deputy Attorney General John Carlin previewed the Department of Justice’s (“DOJ”) refocused corporate enforcement efforts during a speech on October 5, 2021 at GIR Connect: New York. Carlin’s speech underscored the primary levers a new administration can pull to quickly and meaningfully impact the white collar enforcement space: messaging increased white collar enforcement to relevant stakeholders, instituting new and revising existing policies, creating dedicated taskforces, and increasing resources for white collar enforcement. Carlin addressed each of these categories by outlining key DOJ priorities, including increased enforcement related to sanctions, export controls, and cryptocurrency; continued expansion of international cooperation and coordination; a “surge” in resources, exemplified by a new dedicated FBI squad for Foreign Corrupt Practices Act (“FCPA”), market integrity, and health care fraud investigations; an upcoming review and revision of corporate enforcement policies; continued and increased use of data-driven enforcement techniques; enhanced and expanded international cooperation; and a warning regarding companies’ compliance with subpoenas and the terms of resolution agreements.