New "first-in-the-nation" cybersecurity rules in the
pipeline for banks, insurers, and financial services companies
regulated in New York could prove costly for companies, but will
they improve cybersecurity?
The New York Department of Financial Services (NYDFS) has
proposed cybersecurity rules that would require banks, insurers,
and other NYDFS-regulated financial services companies to adhere to
stringent cybersecurity requirements mandating firms to test their
systems, establish plans to respond to cybersecurity events, and
annually certify compliance with the cybersecurity requirements,
among other mandates. Comments on the proposed rules are due in 45
days.
Do the proposed rules signal a new trend to regulate
cybersecurity? Will other states and regulators consider similar
mandatory cybersecurity requirements? This LawFlash will discuss
the genesis of the proposed rules and offer observations on how the
rules could impact companies and affect the regulatory
