[ISN] Cybersecurity: A Global Legal Perspective For Hedge Funds

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. […]