Archive: October 2024

On 15 October 2024, the European Supervisory Authorities (ESAs) issued an opinion regarding the European Commission’s (EC) rejection of the draft Implementing Technical Standards (the Draft ITS) for the register of information under the Digital Operational Resilience Act (Regulation (EU) 2022/2554, DORA). DORA requires financial entities to maintain and regularly update a register of information covering all contractual agreements with ICT third-party service providers. This register is crucial for managing third-party ICT risks and will enable the EU competent authorities and ESAs to supervise compliance with DORA and identify critical ICT service providers subject the DORA’s oversight framework. The Draft ITS contains standard templates for this register.

On 15 October 2024, the European Supervisory Authorities (ESAs) issued an Opinion on the European Commission’s (Commission) rejection of the draft Implementing Technical Standard (ITS) on the register of information under the Digital Operational Resilience Act (DORA).

On October 16, 2024, the New York Department of Financial Services (“NYDFS” or “DFS”) issued guidance raising awareness about combatting cybersecurity risks arising from artificial intelligence (“AI”) used by DFS licensees, such as insurers and virtual currency businesses. Risks revolve around both threat actors’ use of AI offensively and businesses’ increasing AI reliance. The short guidance acknowledges that many AI-related risks exist, focuses on those risks specific to cybersecurity, and highlights some of the NYDFS’s key risks

Lord Clement-Jones has introduced a Public Authority Algorithmic and Automated Decision-Making Systems Private Members' Bill (Bill) into the House of Lords. Currently at the second reading stage, the Bill addresses increasing reliance on AI and algorithmic systems by public authorities in the UK, and aims to mitigate the potential risks associated with their use. The Bill would establish significant new guidelines for the development, deployment, and monitoring of such systems.

Key takeaways:
• New SEC enforcement moves signal no changes in regulatory agenda
• Showing strength, crypto companies sue the SEC
• Staking taxability questions presented to court again
• A new NFT civil liability suit
• SEC states digital assets alone are not securities

M&A in the technology, media and telecommunications (TMT) sector has remained relatively subdued so far this year, with many of the factors identified in our Spring M&A Outlook having persisted into 2024. However, while dealmaking may not have got off to a racing start, the remainder of the year shows signs of improving market conditions with the potential to prompt increased activity levels during the coming months.

Earlier this year we looked at trends in M&A investment in the technology sector, highlighting the TMT sector was the best performing sector in 2023 in terms of deal value and volume. The sector has remained fairly subdued this year, but are there signs this could be changing? We explore with our colleagues in the UK, Europe and China the outlook for the sector in their regions, and the impact of regulation on M&A investment in the tech sector.

On 3 October 2024, the Broadcast Committee of Advertising Practice (BCAP) published a new rule explicitly banning advertisements for certain types of cryptoasset products from being broadcast to mainstream, non-specialist audiences.

On 12 September 2024, the Financial Conduct Authority (FCA) published Consultation Paper CP24/19 on Consumer Credit Regulatory Returns: Credit Broking, Debt Adjusting, Debt Counselling and Providing Credit Information Services (CP24/19). CP24/19 sets out the FCA’s proposal to issue a new regulatory reporting return for consumer credit firms who engage in one or more of the regulated activities of credit broking, debt adjusting, debt counselling, and providing credit information services.

On September 17, 2024, California enacted two laws relating to artificial intelligence and its use in digital replicas. The two laws relate to employment law (AB 1836) and contracts against public policy (AB 2602). The unauthorized digital replicas law (AB 2602) goes into effect on January 1, 2025, but AB 1836 does not take effect until January 1, 2026.