Close X
Attorney Spotlight

What colorful method does Claire Miley use to keep up with the latest healthcare regulations as they relate to proposed transactions? Find out more>

Search

Close X

Experience

Search our Experience

Experience Spotlight

On December 1, 2016, Parker Hannifin Corporation and CLARCOR Inc. announced that the companies have entered into a definitive agreement under which Parker will acquire CLARCOR for approximately $4.3 billion in cash, including the assumption of net debt. The transaction has been unanimously approved by the board of directors of each company. Upon closing of the transaction, expected to be completed by or during the first quarter of Parker’s fiscal year 2018, CLARCOR will be combined with Parker’s Filtration Group to form a leading and diverse global filtration business. Bass, Berry & Sims has served CLARCOR as primary corporate and securities counsel for 10 years and served as lead counsel on this transaction. Read more here.

CLARCOR
Close X

Thought Leadership

Enter your search terms in the relevant box(es) below to search for specific Thought Leadership.
To see a recent listing of Thought Leadership, click the blue Search button below.

Thought Leadership Spotlight

Securities Law Exchange BlogSecurities Law Exchange blog offers insight on the latest legal and regulatory developments affecting publicly traded companies. It focuses on a wide variety of topics including regulation and reporting updates, public company advisory topics, IPO readiness and exchange updates including IPO announcements, M&A trends and deal news.

Read More >

Recent SEC Cybersecurity Risk Alert Announces Examination of 50-Plus Broker-Dealers and Investment Advisers

Publications

April 29, 2014

As mentioned in our previous Alert regarding the National Institute of Standards and Technology's (NIST) new framework for promoting cybersecurity ("Framework for Improving Critical Infrastructure Cybersecurity"), financial institutions increasingly are the subject of regulators' attention regarding cybersecurity preparedness.

In continuation of that theme, on April 15, 2014, the U.S. Securities and Exchange Commissions' (SEC) Office of Compliance Inspections and Examinations (OCIE) released a Risk Alert announcing its Cybersecurity Initiative, which aims to assess cybersecurity preparedness in the securities industry.

On the immediate horizon for the OCIE's Cybersecurity Initiative are examinations of more than 50 registered broker-dealers and registered investment advisers in which the OCIE will evaluate firms' cybersecurity preparedness. These examinations will focus on:

  • cybersecurity governance
  • identification and assessment of cybersecurity risks
  • protection of networks and information
  • risks associated with remote customer access and funds transfer requests
  • risks associated with vendors and other third parties
  • detection of unauthorized activity
  • experiences with certain cybersecurity threats

As part of the OCIE Risk Alert, the OCIE included a sample questionnaire that it will use in connection with the examinations. Many of the questions track information outlined in NIST's new framework.

The questionnaire particularly focuses on whether a firm has in place several different written policies that are implicated in assessing cybersecurity preparedness, including the following:

  • basic information security policy
  • business continuity plan that addresses mitigation of cybersecurity incident
  • incident report policy
  • data destruction policy
  • policy for verifying customer email requests to transfer funds
  • policies relating to information security for vendors and business partners
  • updating supervisory procedures to reflect the Identity Theft Red Flags Rules, which became effective in 2013 (17 CFR § 248—Subpart C—Regulation S-ID)

The OCIE staff also is interested in whether firms have maintained insurance to cover losses and expenses associated with cybersecurity incidents, what categories of data and devices are encrypted by the firm, monitoring activities related to the firm's network and physical environments, and how the firm conducts risk assessments of vendors and business partners (including whether the firm has contractual requirements for vendors and partners).

Even though most broker-dealers and investment advisers will not be examined by the OCIE in the near term, the extensive list of questions and requests provided in the OCIE questionnaire should be used by firms to internally assess what they should be doing now to address cybersecurity concerns and threats.

For more information on other cybersecurity, data security and privacy matters, please contact one of the authors.


Related Professionals

Related Services

Notice

Visiting, or interacting with, this website does not constitute an attorney-client relationship. Although we are always interested in hearing from visitors to our website, we cannot accept representation on a new matter from either existing clients or new clients until we know that we do not have a conflict of interest that would prevent us from doing so. Therefore, please do not send us any information about any new matter that may involve a potential legal representation until we have confirmed that a conflict of interest does not exist and we have expressly agreed in writing to the representation. Until there is such an agreement, we will not be deemed to have given you any advice, any information you send may not be deemed privileged and confidential, and we may be able to represent adverse parties.