In addition to the normal operational and legal risks associated with owning and managing portfolio companies, 2025 has introduced or exacerbated a wave of geopolitical and macroeconomic risks such as inflation, tariffs,...more
The SEC’s new and proposed rules on cybersecurity and cyber-incident reporting will have a dual impact on private investment advisers and funds.
First, the proposal by the SEC will impose cybersecurity related...more
4/18/2024
/ Cyber Incident Reporting ,
Cybersecurity ,
Data Collection ,
Enforcement ,
Governance Standards ,
Investment Adviser ,
New Rules ,
Policies and Procedures ,
Recordkeeping Requirements ,
Regulatory Agenda ,
Risk Management ,
Securities and Exchange Commission (SEC) ,
Technology Sector
In a wave of SEC rulemaking this past year, representing a “new world order” event akin to Dodd-Frank, the SEC has provided itself with a fresh set of tools to increase regulatory and enforcement scrutiny on private funds....more
3/26/2024
/ Conflicts of Interest ,
Corporate Counsel ,
Cybersecurity ,
Enforcement ,
Environmental Social & Governance (ESG) ,
New Amendments ,
New Rules ,
Portfolio Companies ,
Private Equity ,
Regulatory Agenda ,
Securities and Exchange Commission (SEC)
To understand the litigation and regulatory risks that are coming in 2024 for private capital, it is helpful to look back briefly on recent events. Arguably, the single most important event over the last 18 months was the...more
3/19/2024
/ Acquisitions ,
Asset Management ,
Cryptocurrency ,
Cybersecurity ,
Dispute Resolution ,
Enforcement Actions ,
Fund Managers ,
Hedge Funds ,
Interest Rates ,
Investment Management ,
Investors ,
Mergers ,
Private Equity ,
Private Funds ,
Regulatory Agenda ,
Regulatory Reform ,
Regulatory Requirements ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Technology Sector
Recent enforcement actions highlight the increased regulatory scrutiny that private funds may face with respect to internal cybersecurity protocols and responses to cyber-crimes and cyber incidents under new and updated...more
5/23/2023
/ Coinbase ,
Compliance ,
Cyber Crimes ,
Cybersecurity ,
Enforcement Actions ,
Investment Advisers Act of 1940 ,
Investment Company Act of 1940 ,
New Legislation ,
Popular ,
Privacy Laws ,
Private Funds ,
Robinhood Financial ,
Sanctions ,
Securities and Exchange Commission (SEC)
Everything, everywhere, all at once, as a descriptor, captures the litigation and regulatory risks for the asset management industry in 2023. Every corner of the market faces greater risks than at any time since 2008. After...more
In 2020, SolarWinds Corp., a company that provided information technology software to private and government entities, was the victim of a cybersecurity breach. Russian hackers are believed to have slipped malicious code...more
11/16/2022
/ Bad Faith ,
Breach of Duty ,
Corporate Governance ,
Cybersecurity ,
Data Breach ,
Enforcement ,
Fiduciary Duty ,
Hackers ,
Russia ,
Securities and Exchange Commission (SEC) ,
Shareholders ,
SolarWinds ,
Technology Sector
"Today, nearly every company is or wants to be a business capable of leveraging information and advances in technology. At the same time privacy and cybersecurity laws are changing, becoming more complex and requiring more...more
9/28/2022
/ Acquisitions ,
Cybersecurity ,
Data Privacy ,
Due Diligence ,
EU ,
General Data Protection Regulation (GDPR) ,
Mergers ,
Personal Information ,
Popular ,
Privacy Laws ,
UK
2021 continued the trend of increased regulatory focus on privacy and cybersecurity for private investment funds in the U.S. and abroad. There are no signs of the trend leveling off any time soon. One of the topics that...more
Privacy and cybersecurity issues continue to garner significant attention in the U.S. and abroad. Private investment funds registered with the SEC and their portfolio companies will likely see increased regulatory scrutiny...more
8/30/2021
/ Cybersecurity ,
International Data Transfers ,
Popular ,
Portfolio Companies ,
Privacy Concerns ,
Private Investment Funds ,
Ransomware ,
Regulatory Oversight ,
Regulatory Standards ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC)
A heightened risk for cyberattacks and data breaches calls for companies to remain diligent as they navigate a patchwork of federal, state, local and sector-specific privacy and data protection laws, regulations and guidance....more
8/13/2021
/ Cybersecurity ,
Data Collection ,
Data Management ,
Data Privacy ,
Data Processors ,
Data Protection ,
Information Governance ,
Personal Data ,
Personally Identifiable Information ,
Popular ,
Risk Management
As reported last week, it appears that a state-sponsored security hack has resulted in a major security compromise in widely-used software offered by a company called SolarWinds. The compromised software, known as Orion, is...more
12/22/2020
/ Cyber Attacks ,
Cybersecurity ,
Cybersecurity Information Sharing Act (CISA) ,
Data Breach ,
Data Security ,
Hackers ,
Incident Response Plans ,
Popular ,
Risk Mitigation ,
SolarWinds ,
Supply Chain
As reported last week, a state-sponsored hacker may have breached multiple U.S. government networks through a widely-used software product offered by SolarWinds. The compromised product, known as Orion, helps organizations...more
12/22/2020
/ Cyber Attacks ,
Cyber Crimes ,
Cybersecurity ,
Data Breach ,
Data Security ,
Dual Purpose ,
Due Diligence ,
Hackers ,
Incident Response Plans ,
Popular ,
Risk Assessment ,
SolarWinds
A cyber breach can have serious legal, financial, and reputational consequences for a company, as described in our previous post. As such, cybersecurity threats must be treated as business risks, not just a potential IT...more
9/17/2020
/ Chief Compliance Officers ,
Cyber Threats ,
Cybersecurity ,
Data Breach ,
Data Protection ,
Data Security ,
Incident Response Plans ,
Personally Identifiable Information ,
Popular ,
Security Risk Assessments ,
Senior Managers
A cyber breach can have serious legal, financial, and reputational consequences for a fund sponsor, as described in our previous post. As such, cybersecurity threats must be treated as business risks, not just a potential IT...more
9/16/2020
/ Broker-Dealer ,
Chief Compliance Officers ,
Cyber Threats ,
Cybersecurity ,
Data Breach ,
Data Protection ,
Data Security ,
Incident Response Plans ,
Personally Identifiable Information ,
Popular ,
Registered Investment Advisors ,
Regulation S-P ,
Security Risk Assessments ,
Senior Managers
With more people working remotely than ever before in light of COVID-19, firms in the private equity and hedge fund space should review their Regulation S-P privacy and information-safeguarding policies to ensure they are...more
6/30/2020
/ Broker-Dealer ,
Consumer Financial Protection Bureau (CFPB) ,
Coronavirus/COVID-19 ,
Cybersecurity ,
Data Privacy ,
Data Protection ,
Data Security ,
OCIE ,
Personally Identifiable Information ,
Policies and Procedures ,
Regulation P ,
Regulation S-P ,
Risk Alert ,
Securities and Exchange Commission (SEC)
In today’s world, cybersecurity breaches and threats are pervasive concerns for any business entity, without exception. Working from home arrangements due to COVID-19 constraints only magnify the risk and create further...more
5/21/2020
/ Business E-Mail Compromise (BEC) ,
California Consumer Privacy Act (CCPA) ,
Cyber Attacks ,
Cybersecurity ,
Federal Trade Commission (FTC) ,
FinCEN ,
GLBA Privacy ,
Personally Identifiable Information ,
Ransomware ,
Regulation S-P ,
Safeguards Rule ,
Securities and Exchange Commission (SEC)
Cybersecurity breaches and threats are pervasive concerns for any entity storing valuable data or managing large sums of money: private investment funds are no exception. Recently three private equity firms suffered breaches...more
COVID-19 has created many new concerns for private fund managers; however, managers should be particularly mindful of heightened cybersecurity and fraud risks. With increased numbers of employees teleworking, there are...more
3/24/2020
/ Bank Secrecy Act ,
Coronavirus/COVID-19 ,
Cyber Attacks ,
Cyber Crimes ,
Cybersecurity ,
Data Privacy ,
Data Security ,
Financial Crimes ,
Financial Institutions ,
FinCEN ,
Fund Managers ,
Fund Sponsors ,
Risk Management ,
Scams