New financial services cyber security regulations set to be implemented in New York

A new set of high-level cyber security regulations for financial services is set to be implemented in the state of New York.

Announcing the finalisation of the new changes that had been proposed following detailed deliberations earlier, the Financial Services Superintendent for the New York’s Department of Financial Services, Maria T. Vullo, said that the new regulations are more detailed and reflect a consensus among players in the industry.

The new version of regulations is a product of a detailed deliberation process that has been taking place since the DFS first released a proposed set of rules back in September. However, the process of streamlining the proposed regulations so that they reflect a consensus among industry players has been dogged by controversies.

Back in November, leading players in the industry, financial services providers, argued that the new rules are too complicated to effectively streamline the operations of the company and help them to fight cyber crime successfully.

Other leading industry players, cyber security experts, weighed in, arguing that the detailed and sophisticated nature of the proposed regulations could easily jeopardise industry-wide efforts at combating cyber crime by causing companies to divert resources to ensuring that they comply with the regulations.

But the DFS insisted at the time that the regulations could be an effective way of helping financial service providers make changes to their systems and operations and, by so doing, effectively forestall any form of cyber security attacks.

It appears that the new version of the rules is set to be formalised over the coming few weeks. Already, DFS has indicated that it is expecting financial service providers in the state to audit their operations and systems to ensure that they are compliant with the requirements of the new set of regulations.

It remains to be seen how the new rules will change the manner in which organisations fight cyber crime in the industry.

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