Dec. 01, 2021

FTC Sets Wheels in Motion for a Broad Privacy Rule Restricting Data Collection

In recent weeks, the FTC has taken steps toward drafting a new privacy rule. All but one commissioner has endorsed privacy rulemaking, delivering a bipartisan warning that commercial data collection has become so extensive that consumers no longer can make reasoned judgments about exchanging their data for services. A new FTC staff report details concerns about the collection and use of sensitive data, which the agency could cite as evidence for a new rule. This article examines these recent FTC privacy developments, the hurdles to complete a rule and FTC enforcement and compliance issues to watch in 2022, with input from FTC specialists at Alston & Bird, BakerHostetler, Kelley Drye and Morrison & Foerster. See “How Financial Institutions Should Strengthen Their Data Security to Comply With FTC’s Updated Safeguards Rule” (Nov. 17, 2021).

Former SDNY Complex Frauds and Cybercrime Unit Co-Chief Discusses Prosecution Trends and Takeaways

With the rise in cyberattacks over the last several years, the majority of the cases investigated by the Southern District of New York’s Complex Frauds and Cybercrime Unit – formerly just the Complex Frauds Unit – now involve hacking-related offenses. We spoke to the unit’s former Co-Chief Ian McGinley, now a partner at Akin Gump, about the cyber cases he prosecuted and how he coordinated with other agencies, regulators and private entities. He also provided practical cyber hygiene lessons. See “Implementing NSA-CISA-FBI Advisory Mitigation Tactics for Vulnerabilities Exploited by Russia” (Apr. 28, 2021).

Using Technology and Outsourcing to Enhance Compliance Programs and Manage Conflicts of Interest

Capitalizing on enhanced technology and automation is central to the role of the CCO, and strong internal oversight and execution of the processes are essential. This article from our sister publication the Hedge Fund Law Report covers insights from an ACA Group panel featuring compliance officers at Bridgewater Associates and the Teachers Retirement System of Texas and outside counsel from Schulte. They discussed how and when advisers and institutional investors are using technological solutions and outsourcing to improve their compliance programs. See “The Evolution, Status and Future of RegTech in the Private Funds Industry” (Aug. 4, 2021).

Wilson Sonsini Welcomes Partner Back to Cyber Practice in San Francisco

Beth George, a former Acting General Counsel of the U.S. Department of Defense, has rejoined Wilson Sonsini’s privacy and cybersecurity practice as a partner in San Francisco.