Cybersecurity

The recently agreed Cyber Resilience Act isn’t the only new EU cybersecurity rule set to be published this December: by the end of the year, the European Commission is expected to adopt its draft regulations to establish a European cybersecurity certification scheme (“ECCS”).

Continue Reading EU cyber regulation wave quietly rolls on – Commission set to finalize new cyber standards

Yesterday, the European Commission, Council and Parliament announced that they had reached an agreement on the text of the Cyber Resilience Act (“CRA”). As a result, the CRA now looks set to finish its journey through the EU legislative process early next year. As we explained in our prior post about the Commission proposal, the CRA will introduce new cybersecurity obligations for a range of digital products sold in Europe. We’ll provide a more detailed summary of the agreed text once it is finalized and published but in this post we set out a brief summary of key provisions. In terms of timing, the CRA will come into force over a phased transition period starting in late 2025.
Continue Reading The EU’s Cyber Resilience Act Has Now Been Agreed

Earlier this month, the New York Department of Financial Services (“NYDFS”) announced that it had finalized the Second Amendment to its “first-in-the-nation” cybersecurity regulation, 23 NYCRR Part 500.  This Amendment implements many of the changes that NYDFS originally proposed in prior versions of the Second Amendment released for public comment in November 2022 and…

On October 30, 2023, days ahead of government leaders convening in the UK for an international AI Safety Summit, the White House issued an Executive Order (“EO”) outlining an expansive strategy to support the development and deployment of safe and secure AI technologies (for further details on the EO, see our blog here). As readers will be aware, the European Commission released its proposed Regulation Laying Down Harmonized Rules on Artificial Intelligence (the EU “AI Act”) in 2021 (see our blog here). EU lawmakers are currently negotiating changes to the Commission text, with hopes of finalizing the text by the end of this year, although many of its obligations would only begin to apply to regulated entities in 2026 or later.

The EO and the AI Act stand as two important developments shaping the future of global AI governance and regulation. This blog post discusses key similarities and differences between the two.…

Continue Reading From Washington to Brussels: A Comparative Look at the Biden Administration’s Executive Order and the EU’s AI Act

A would-be technical development could have potentially significant consequences for cloud service providers established outside the EU. The proposed EU Cybersecurity Certification Scheme for Cloud Services (EUCS)—which has been developed by the EU cybersecurity agency ENISA over the past two years and is expected to be adopted by the European Commission as an implementing act in Q1 2024—would, if adopted in its current form, establish certain requirements that could:

  1. exclude non-EU cloud providers from providing certain (“high” level) services to European companies, and
  2. preclude EU cloud customers from accessing the services of these non-EU providers.

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Continue Reading Implications of the EU Cybersecurity Scheme for Cloud Services

On 12 September 2023, the UK Information Commissioner, John Edwards, and the Chief Executive of the National Cyber Security Centre (“NCSC”), Lindy Cameron, signed a joint memorandum of understanding (“MoU”) detailing how the Information Commissioner’s Office (“ICO”) and NCSC will work together moving forward.

The MoU does not create legally binding obligations between the ICO and NCSC, but provides a strong signal of intent for areas of cooperation.  The statements about information sharing and engaging with NCSC leading to potentially reduced fines under the UK GDPR are likely to be of particular interest to commercial organizations.…

Continue Reading ICO Encourages Organizations To Cooperate with NCSC and Flags Potential Reduction in Fines

On August 21, 2023, the Cybersecurity and Infrastructure Security Agency (“CISA”), National Security Agency (“NSA”), and National Institute of Standards and Technology (“NIST”) issued a joint quantum-readiness factsheet (the “Factsheet”) to inform organizations—particularly those that support critical infrastructure sectors—about quantum computing threats and to urge these organizations to begin planning for future migration to…

On August 4, 2023, the Securities and Exchange Commission’s (“SEC”) final rule on Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure was published in the Federal Register, confirming the dates on which these new requirements will enter into force.  Covington has previously published a detailed summary of this rule, which imposes significant new disclosure requirements for publicly traded companies and, in certain instances, foreign private issuers.  As discussed in greater detail in that alert, the new rule requires U.S. public companies to report material cybersecurity incidents on Form 8-K within four business days of their determination that a material cybersecurity incident has occurred.  Foreign private issuers will be required to furnish information on Form 6-K about material cybersecurity incidents that they disclose or otherwise publicize to any stock exchange or to security holders in a foreign jurisdiction. …

Continue Reading Compliance Dates for SEC’s New Cyber Disclosure Rules Confirmed

Following up on the recent release by the New York Department of Financial Services (“NYDFS”) of an updated Proposed Second Amendment to its “first-in-the-nation” Cybersecurity Regulation, 23 NYCRR Part 500 (Proposed Second Amendment released June 28, 2023), it is not too late for companies to submit comments on the most recent version of the proposed…

According to a recently-released meeting agenda, the Securities and Exchange Commission’s (“SEC”) upcoming July 26, 2023 meeting will include consideration of adopting rules to enhance disclosures regarding cybersecurity risk management, governance, and incidents by publicly traded companies. 

The SEC initially proposed these rules in March 2022.  If adopted as proposed, the new rules would…