The internet knows no borders, neither do we. Our global team of cybersecurity response experts work across borders, combining data protection, privacy, regulatory, white collar and litigation expertise in order to deliver seamless crisis management and legal advice, whenever and wherever needed.
The digitalization and free flow of information has transformed global business. However, with increased opportunities have come new and increased risks, together with complex legislative regimes that can vary significantly by jurisdiction, and are constantly evolving. Even the most conscientious company can become the victim of a cybersecurity incident, such as the stealing of client or company information, or a ransomware attack. We work with a wide range of multinational companies to manage their cybersecurity risks, developing rapid response plans, providing time-critical crisis management advice, and working with clients to manage any resulting legal issues that may arise.
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Changes are coming to the UK’s cybersecurity legal landscape. The new Cyber Security and Resilience (Network and Information Systems) Bill aims to expand legal requirements to more sectors, tighten incident reporting rules, give the Government stronger powers to tackle cyber threats, and ramp up fines for serious breaches.
Member States were required to implement the NIS 2 Directive ("NIS 2") into national law by 17 October 2024. One year on, many EU Member States have failed to meet the transposition deadline, creating confusion and increasing compliance complexity for organisations across the EU.
The Cyber Resilience Act (the "CRA") entered into force on 10 December 2024 and applies in full from 11 December 2027. Manufacturers of in-scope products should start the compliance journey as soon as possible to avoid impacts to the product development cycle and non-compliance risk exposure.
White & Case Partners John Timmons and Clara Hainsdorf explore the key issues for organizations grappling with NIS 2 compliance in light of the complex implementation landscape.
On 14 January 2025, the Home Office opened a public consultation (the "Consultation") on proposals seeking to address the growing threat and impact of ransomware in the UK.
On October 16, 2024, the New York State Department of Financial Services (the "DFS"), under its Cybersecurity Regulation—23 NYCRR Part 500—issued a memorandum providing guidance on the risks posed by artificial intelligence ("Guidance Memo").
On October 21, 2024, the US Securities and Exchange Commission ("SEC") Division of Examinations ("Examination Division") announced its 2025 Examination Priorities ("Report"). Investment advisers and broker-dealers should ensure that policies, procedures and surveillance efforts related to these priorities address concerns outlined in the Report.
The U.S. Securities and Exchange Commission's ("SEC") Division of Enforcement has recently brought a spate of enforcement actions relating to key topics for public companies. These include enforcement actions related to cybersecurity incident disclosure, director independence and Regulation Fair Disclosure ("Reg FD") violations, which are described below, and actions based on Section 13 and 16 beneficial ownership filings, as discussed in our prior alert.
On July 18, 2024, a New York federal judge dismissed most of the US Securities and Exchange Commission's ("SEC") claims against SolarWinds Corp. ("SolarWinds" or the "Company") and its Chief Information Security Officer ("CISO"), Timothy G. Brown, in connection with the Company's cybersecurity practice.
The NIS 2 directive establishes a regulatory framework aimed at improving the level of cybersecurity across the EU.
On May 21, 2024, the SEC's Director of the Division of Corporation Finance issued a statement on cybersecurity incident disclosures in light of the SEC's new cybersecurity disclosure rules. Our summary of this statement and key take-aways from White & Case's survey of cybersecurity disclosures is below.
On October 30, 2023, the US Securities and Exchange Commission ("SEC") announced that it filed charges against SolarWinds Corp. ("SolarWinds" or the "Company") and its Chief Information Security Officer ("CISO") in connection with the SEC Division of Enforcement's ("Enforcement Division") investigation of a cyberattack.
On July 26, 2023, the Securities and Exchange Commission ("SEC"), in a 3-2 vote, adopted rules that will require public companies to make prescribed cybersecurity disclosures.
In this brief three-minute video, London-based partner Lawson Caisley, Chair of White & Case's Global Cyber Risk Committee, shares his insights on governing cyber risk at the corporate level and some of the challenges of cyber risk management in the boardroom. Filmed at the Digital Directors Network (DDN) Domino 2023 conference on digital and cybersecurity governance.
In this short three-minute video, Washington, DC–based partner F. Paul Pittman discusses the implications of the proposed new SEC rules on cybersecurity governance and what corporate boards can do now. Filmed at the Digital Directors Network (DDN) Domino 2023 conference on digital and cybersecurity governance.
The potential for cybersecurity threats and attacks looms large and the technology companies developing new products and services play a constant game of cat-and-mouse with hackers and cybercriminals for control of cyberspace. Here are six points to consider when analyzing cybersecurity risks and protections.
In an article for The Times, White & Case partner Lawson Caisley discusses why it could become increasingly common for UK directors to "face personal liability and regulatory censure as a result of their company suffering or mishandling a cyberbreach".
Two legal cases in the US in the past month suggest that regulators and prosecutors are becoming more determined to take personal action against directors and senior executives who fail to deal adequately with cyber security breaches.
On March 9, 2022, the Securities and Exchange Commission ("SEC") proposed rules that would require public companies to make prescribed cybersecurity disclosures.
In The Legal 500's newly released In-House Lawyer Magazine a group of White & Case lawyers has contributed a legal briefing on trends in German commercial litigation.
In recent years, demands for payments in cryptocurrencies have become the ransom of choice for cyber extortionists and other online frauds. As a result, the English Court's powers are increasingly being called upon.
On October 21, 2024, the US Securities and Exchange Commission ("SEC") Division of Examinations ("Examination Division") announced its 2025 Examination Priorities ("Report").1 Investment advisers and broker-dealers should ensure that policies, procedures and surveillance efforts related to these priorities address concerns outlined in the Report.
The Examination Division conducts inspections of entities registered with the SEC, including investment advisers and broker-dealers. While the Report is not exhaustive of the Examination Division's focus areas, it does highlight particular risk areas. Additionally, the Examination Division's priorities often lead to enforcement actions focused on those same priorities, so the list serves as a guide for potential areas for enforcement.
As in previous years, the Examination Division released its priorities to coincide with the start of the SEC's fiscal year in order to:
"provide more transparency and as early as reasonably possible to allow registered firms more opportunities to evaluate their compliance efforts."2
The Report covers perennial priorities of the Examination Division alongside new risk areas. Three noteworthy risk areas that are relevant to most capital markets participants include: (1) emerging financial technologies based on artificial intelligence ("AI"); (2) information security and operational resiliency; and (3) crypto assets.
The Examination Division seeks to examine registrants' use of services like automated investment tools, AI and trading algorithms. Specifically, the Report outlines that with respect to AI, the Examination Division will assess registrants' policies and procedures for monitoring controls, fraud prevention, anti-money laundering and protections against the loss or misuse of client information. This priority comes after a year during which the SEC has continued to reiterate its concerns about AI-related risks. Both firms and individual actors have an obligation to ensure accurate AI-related disclosures, as described in our earlier alert.
In 2025, the Examination Division will continue to prioritize its review of cybersecurity practices, paying particular attention to protecting investor information, customer records and assets. The Examination Division will scrutinize policies in place for data loss prevention, access controls and responses to cyber-related incidents. The SEC suggests registrants should account for third-party services and products when assessing cybersecurity risks and planning for cyber-resiliency for essential business operations. See our alert for additional suggestions.
Building on its 2024 priorities, the Examination Division will remain committed to closely monitoring and—when appropriate—conducting examinations of registrants offering investments involving crypto assets. The Examination Division noted that it will review whether the registrant is following appropriate standards when recommending crypto assets and reviewing and strengthening its compliance practices and risk disclosures relating to these products. We expect crypto to remain a priority for the SEC given the recent high-profile crypto enforcement actions this year.
The Examination Division identified several other priorities, including assessing registrant compliance with Regulations S-ID and S-P and staying current with all required policies and procedures pertaining to protecting customer records and information. Additionally, the Examination Division will continue to prioritize anti-money laundering ("AML") programs and assess whether broker-dealers and registered investment companies are complying with rules surrounding tailoring their business model, conducting independent testing and meeting SAR filing obligations. The Examination Division also noted that it may begin conducting examinations of registered security-based swap execution facilities in late fiscal year 2025 after it adopted new regulations in late 2023.
Olivia Hussey (White & Case, Law Clerk, New York) contributed to the development of this publication.
1 2025 Examination Priorities, US Sec. & Exch. Comm'n Div. of Examinations (Oct. 21, 2024), https://www.sec.gov/files/2025-exam-priorities.pdf.
2 2025 Examination Priorities, supra note 1.
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This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.
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