http://risktech-forum.com/news/cybersecurity-a-global-legal-perspective-for-hedge-funds
Hedgeweek
11 June 2015
The House of Representatives passed a new cybersecurity bill – the
Protecting Cyber Networks Act (PCNA) – to allow file sharing between
government intelligence agencies and private companies and raise the
overall awareness of hacking.
This is just the latest chapter in what is fast becoming a key narrative
within the US, where cybersecurity legislation is being rolled out to
address the growing sophistication of cyber attacks.
Hedge funds are now becoming a more pronounced target and to that end,
lawyers are requiring to get on top of the issues to advise their clients
accordingly. Ed McNicholas is a partner at Sidney Austin LLP in Washington
DC. He confirms that he has just finished a treatise for the Practicing
Law Institute, the aim of which is to provide a legal guide on
cybersecurity. It is due to be published in June.
“The law here is developing rapidly and one of the biggest things that
hedge funds need to do is to ensure communication between their lawyers
and their IT staff on this issue. The lawyers have, for a long time,
considered it to be an IT issue but they need to get up to speed on this,”
says McNicholas.
McNicholas sees three big tasks facing lawyers. The first relates to
managing the information assets of a hedge fund. These are highly
specialised vehicles and as such an intellectual step needs to be taken by
law firms in realising that this is not an issue that pertains solely to
personal data. Hedge funds have significant intellectual property –
trading algorithms, investor details, proprietary research etc. In
relation to cybersecurity, it is important to identify those assets and
understand where and with whom the manager shares those assets.
[...]
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