Subscribe!
Part 6: Highlights from LACBA’s 52nd Annual Securities Regulation Seminar – Cyber Regulation and Enforcement
Share this post
Panel: Cyber Regulation and Enforcement
The Cyber Regulation and Enforcement Panel at LACBA’s 52nd Annual Securities Regulation Seminar discussed the U.S. Securities and Exchange Commission‘s (SEC) priorities, regulation, guidance and cyber enforcement initiatives, cryptocurrency and ICOs. Nicolas Morgan, Partner, Paul Hastings LLP, moderated the panel. Panelists were Katherine J. Blair, Partner, Manatt, Phelps & Phillips, LLP, David Fredrickson, Chief Counsel, SEC Division of Corporation Finance and Diana Tani, Assistant Director, Cyber Enforcement Unit, SEC Los Angeles Regional Office. The bold headlines below are the main takeaways followed by a brief discussion.
Companies of all sizes can fall victim to phishing scams
Katherine Blair discussed how companies of all sizes can fall victim to phishing scams because scammers are getting more sophisticated. She described an example where she received an email from the CEO of a law firm that said “quick, need information.” Luckily, she had been trained and was able to recognize this as a phishing scam since her firm does testing to determine which employees fall victim to these types of email phishing scams. Contrast this with employees at smaller companies that may open emails contrary to best practices because they are not adequately trained, the company does not have in-house counsel, IT department or any policies regarding phishing scams.
Assessing materiality in the cybersecurity context is not always straightforward
Some of the questions a securities attorney may ask when assessing materiality are:
- Is it material through the eyes of the investor?
- What is the cost of the damage?
- Are there personal data issues?
- Am I disclosing information too often? If so, this may dilute the importance of the information that you are disclosing.
Furthermore, it is difficult to assess materiality when cybersecurity lawyers are siloed from security lawyers. There is an evolving practice the combines the skills of these types of lawyers.
Reporting Cybersecurity Incidents on Form 8-K has Pros and Cons that need to be carefully weighed
Each time a cybersecurity incident occurs, securities attorneys must decide whether to report the incident on Form 8-K. On the one hand, disclosing such an incident would inform investors who have invested in a company. On the other hand, it may provide wrongdoers with an unfair advantage and hinder investigative efforts of law enforcement to catch the wrongdoers.
Securities Laws apply to Digital Assets
David Fredrickson explained that digital asset enthusiasts were initially so excited about digital assets that they forgot about the securities laws. However, there has been tremendous progress in this area as issuers are gaining increasing awareness that securities laws apply to digital assets. David Fredrickson also referred to a few no action letters in this space such as the TurnKey Jet, Inc. no action letter. He also dropped some historical knowledge by referring to the Whiskey Receipts case.
Telegram ICO Shutdown Is a Case Worth Watching
Diana Tani described the Telegram ICO Shutdown in detail such as why Telegrams’ cryptocurrency, called Grams, were considered securities under the federal securities laws, and the danger in allowing Grams to flood the U.S. capital markets. If you want to read more about the Telegram ICO Shutdown, read my previous blog here.
Panel: Enforcement Workshop
The Enforcement Panel discussed the recent enforcement trends and focus of the SEC and the U.S. Department of Justice (DOJ). John W. Spiegel, Munger, Tolles & Olson LLP served as moderator and the panelists were Nicolas Morgan, Partner, Paul Hastings LLP and Katharine E. Zoladz, Associate Regional Director – Enforcement, SEC Los Angeles Regional Office. The bold headlines below are the main takeaways followed by a brief discussion.
What is the impact of Kokesh?
SEC View: Kokesh impacts how the SEC Division of Enforcement selects cases, conducts investigations, and has increased the use of subpoena enforcement. The SEC must work faster.
Defense View: Kokesh does not have a big impact because the Division of Enforcement seeks to file cases within two years.
How do you respond to parties who don’t want to sign a tolling agreement?
SEC View: It is the client’s right not to sign a tolling agreement.
Defense View: In most cases, it is too risky to advise a client not to sign a tolling agreement.
What is your view of the Supreme Court’s version of the Whistleblower Rule?
SEC View: The SEC’s rule was better than the Supreme Court’s version of the Whistleblower Rule.
Defense View: The SEC’s rule was better than the Supreme Court’s version of the Whistleblower Rule.
Too many panels, not enough time
The Best Way to Top off a full day of Securities Law is to celebrate eating Excellent Seafood with amazing people! The pictures below tell a delicious story . . .
Please email me with questions or leave a comment below!
Excellent goods from you, man. I have understand your stuff previous to and you are just too wonderful. I actually like what you’ve bought here, certainly like what you’re stating and the way in which during which you say it. You are making it entertaining and you continue to take care of to keep it sensible. I can’t wait to read much more from you. This is actually a great site.| а
What’s Going down i’m new to this, I stumbled upon this I’ve found It absolutely helpful and it has helped me out
loads. I hope to contribute & aid different customers like its aided me.
Great job.
Thanks for stopping by!
This is a topic that is close to my heart… Cheers!
Where are your contact details though?
Thanks for stopping by! You can find my contact information in the State Bar of CA database.
It’s remarkable designed for me to have a web site, which is helpful for my
experience. thanks admin
Thanks for stopping by!
Hello there, You’ve done an incredible job. I’ll certainly
digg it and personally recommend to my friends. I
am confident they will be benefited from this web site.
adreamoftrains web hosting service
Thanks for stopping by!
It’s impressive that you are getting thoughts from this piece of writing as well as from our discussion made here.
Hi friends, how is the whole thing, and what you would like to say on the topic of this post, in my view its truly awesome for me.
psg fotbollströjor
I know this web page gives quality depending content and additional information, is there any other website which presents these kinds of data in quality?
Hello, this weekend is pleasant for me, since this time i am reading this great educational article here at my residence.
There’s certainly a great deal to find out about this subject. I really like all the points you’ve made.
What’s up, after reading this remarkable post i am too delighted to share my know-how here with colleagues.
An outstanding share! I have just forwarded this onto a co-worker who had been conducting a little homework on this. And he in fact ordered me breakfast simply because I stumbled upon it for him… lol. So let me reword this…. Thanks for the meal!! But yeah, thanks for spending some time to talk about this topic here on your blog.
Thanks for your personal marvelous posting! I certainly enjoyed reading it, you’re a great author.I will make certain to bookmark your blog and will often come back sometime soon. I want to encourage you continue your great job, have a nice morning!
Hey! I’m at work browsing your blog from my new iphone! Just wanted to say I love reading your blog and look forward to all your posts! Keep up the superb work!
Howdy this is kinda of off topic but I was wanting to know if blogs use WYSIWYG editors or if you have to manually code with HTML. I’m starting a blog soon but have no coding skills so I wanted to get guidance from someone with experience. Any help would be greatly appreciated!
I absolutely love your blog.. Very nice colors & theme. Did you develop this amazing site yourself? Please reply back as I’m planning to create my own blog and want to learn where you got this from or just what the theme is called. Thanks!
This is a really good tip especially to those fresh to the blogosphere. Brief but very precise info… Appreciate your sharing this one. A must read post!
Hello! This post could not be written any better! Reading this post reminds me of my previous room mate! He always kept chatting about this. I will forward this write-up to him. Fairly certain he will have a good read. Thanks for sharing!
Your method of telling all in this paragraph is truly nice, every one be able to simply understand it, Thanks a lot.
This is my first time pay a quick visit at here and i am truly impressed to read all at single place.
Hello, I think your website might be having browser compatibility issues. When I look at your website in Opera, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, great blog!
I need to to thank you for this excellent read!! I certainly enjoyed every bit of it. I have got you book-marked to check out new stuff you post…
Your style is very unique compared to other people I have read stuff from. Many thanks for posting when you have the opportunity, Guess I will just book mark this blog.
Nice answer back in return of this issue with firm arguments and telling all concerning that.
Asking questions are genuinely fastidious thing if you are not understanding something completely, except this post gives nice understanding yet.
Asking questions are really pleasant thing if you are not understanding something fully, except this article gives pleasant understanding even.
Hi, after reading this remarkable paragraph i am as well happy to share my knowledge here with friends.
The other day, while I was at work, my cousin stole my iphone and tested to see if it can survive a 40 foot drop, just so she can be a youtube sensation. My iPad is now destroyed and she has 83 views. I know this is totally off topic but I had to share it with someone!
Hello to all, how is the whole thing, I think every one is getting more from this website, and your views are pleasant in favor of new viewers.
Hi friends, how is all, and what you want to say about this paragraph, in my view its really awesome in support of me.
excellent post, very informative. I’m wondering why the opposite experts of this sector do not realize this. You must continue your writing. I am confident, you have a huge readers’ base already!
You made some decent points there. I looked on the internet for more info about the issue and found most individuals will go along with your views on this web site.
I think the admin of this site is in fact working hard in favor of his web page, since here every information is quality based material.
I’ve read some just right stuff here. Definitely value bookmarking for revisiting. I surprise how so much effort you put to create such a wonderful informative web site.
Excellent website. Plenty of helpful info here. I am sending it to a few buddies ans additionally sharing in delicious. And of course, thanks on your sweat!
Wow that was strange. I just wrote an really long comment but after I clicked submit my comment didn’t appear. Grrrr… well I’m not writing all that over again. Regardless, just wanted to say excellent blog!
Hello! I know this is kinda off topic but I’d figured I’d ask. Would you be interested in exchanging links or maybe guest authoring a blog article or vice-versa? My website addresses a lot of the same topics as yours and I think we could greatly benefit from each other. If you happen to be interested feel free to shoot me an e-mail. I look forward to hearing from you! Awesome blog by the way!
You need to take part in a contest for one of the most useful websites on the net. I will highly recommend this website!
Its not my first time to go to see this web page, i am visiting this web site dailly and obtain fastidious information from here every day.
I’m not sure where you’re getting your information, but great topic. I needs to spend some time learning much more or understanding more. Thanks for great info I was looking for this information for my mission.
For the reason that the admin of this site is working, no question very shortly it will be famous, due to its quality contents.
We are a group of volunteers and opening a new scheme in our community. Your web site offered us with useful info to work on. You have performed a formidable activity and our entire group shall be thankful to you.
Woah! I’m really enjoying the template/theme of this site. It’s simple, yet effective. A lot of times it’s challenging to get that “perfect balance” between usability and appearance. I must say you’ve done a amazing job with this. In addition, the blog loads extremely quick for me on Opera. Outstanding Blog!
Nice post. I used to be checking continuously this weblog and I’m impressed! Very useful info specifically the last part 🙂 I care for such info much. I used to be looking for this particular info for a long time. Thanks and good luck.
What’s up, always i used to check webpage posts here in the early hours in the break of day, as i love to gain knowledge of more and more.
Hi! I know this is kinda off topic however I’d figured I’d ask. Would you be interested in trading links or maybe guest writing a blog post or vice-versa? My site goes over a lot of the same topics as yours and I think we could greatly benefit from each other. If you happen to be interested feel free to shoot me an e-mail. I look forward to hearing from you! Awesome blog by the way!
I think this is among the most important information for me. And i’m glad reading your article. But wanna remark on some general things, The site style is great, the articles is really nice : D. Good job, cheers
I’m not sure where you’re getting your info, but good topic. I needs to spend some time learning more or understanding more. Thanks for fantastic info I was looking for this information for my mission.
I always emailed this weblog post page to all my friends, because if like to read it afterward my friends will too.
Hi there it’s me, I am also visiting this site daily, this web site is in fact pleasant and the people are in fact sharing nice thoughts.
Hi there, I enjoy reading all of your article post. I like to write a little comment to support you.
What’s up to all, for the reason that I am genuinely keen of reading this website’s post to be updated daily. It carries good material.
Hmm is anyone else encountering problems with the images on this blog loading? I’m trying to find out if its a problem on my end or if it’s the blog. Any feedback would be greatly appreciated.
Great post.
I always spent my half an hour to read this website’s posts everyday along with a cup of coffee.
This is very interesting, You’re a very skilled blogger. I have joined your feed and look forward to seeking more of your wonderful post. Also, I have shared your website in my social networks!
I do believe all of the concepts you’ve presented in your post. They’re very convincing and will certainly work. Still, the posts are very quick for starters. May you please prolong them a little from subsequent time? Thank you for the post.
I always used to study piece of writing in news papers but now as I am a user of web so from now I am using net for posts, thanks to web.
Good article. I absolutely appreciate this website. Keep it up!
Thank you for the auspicious writeup. It in fact was a amusement account it. Look advanced to more added agreeable from you! By the way, how can we communicate?
Spot on with this write-up, I really believe that this web site needs much more attention. I’ll probably be returning to read more, thanks for the advice!
We absolutely love your blog and find a lot of your post’s to be exactly what I’m looking for. Does one offer guest writers to write content for you? I wouldn’t mind creating a post or elaborating on most of the subjects you write regarding here. Again, awesome web log!
Hey very interesting blog!
Hi there to all, how is everything, I think every one is getting more from this website, and your views are fastidious in support of new users.
Thank you and please stop by again!
It’s going to be finish of mine day, however before end I am reading this enormous post to increase my experience.
Thank you and please stop by again!
Hello there, I discovered your web site by the use of Google while looking for a related matter, your web site came up, it appears great. I’ve bookmarked it in my google bookmarks.
Hi there, simply was aware of your weblog via Google, and found that it is really informative. I’m going to watch out for brussels. I will appreciate for those who proceed this in future. Many people can be benefited out of your writing. Cheers!
Thank you and please stop by again!