The Ponemon Institute, a privacy and information management research firm, released its fifth annual U.S. Cost of a Data Breach Study (the “Study”). According to the Study the cost of a data breach increased two dollars from last year to $204 per compromised record. Although the number of reported data breaches decreased (657 in 2008 and 498 in 2009), the average total cost of a data breach rose from $6.65 million in 2008 to $6.75 million in 2009.
Medical Professionals Continue to Challenge the FTC’s Enforcement of the Red Flags Rule
By Troutman Pepper Locke on
Posted in Privacy/Data Security/Cyber Risk, United States
On January 27, 2010, the American Medical Association, American Dental Association, American Osteopathic Association, and the American Veterinary Medical Association sent a letter to the FTC Chairman, Jon Leibowitz, requesting that the FTC announce that the Red Flags Rule will not be applied against licensed health care professionals until at least 90 days after the final resolution of the American Bar Association (ABA) lawsuit (as we reported here) and commit that, if the final resolution of the ABA lawsuit is that the Red Flags Rule will not be applied to attorneys, the FTC will not apply the Red Flags Rule to licensed health care professionals either. …
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UK: Third Parties May Have Rights of Action Against Insurance Brokers
By Troutman Pepper Locke on
Posted in Coverage & Claims, United Kingdom
In Mr Peter Crowson v HSBC Insurance Brokers Ltd (unreported), the Judge, in considering an application to strike out the claimant’s claim, held that an individual who is not in a contractual relationship with an insurance broker may have rights of action in tort and/or contract where the insurance to be arranged is also for his benefit.
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Last Week in DC: The Healthcare Reform Debate – February 8, 2010
By Troutman Pepper Locke on
As the White House and Congress focused their attention on the release of President Obama’s FY 2011 Budget and the new jobs agenda, healthcare reform efforts took a back seat last week. Despite the priority shift, off the record chatter and closed door meetings continued, as speculation grew over if and how Democrats would be able to revive their stalled priority in the coming months. …
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UK: Financial Services Authority Issues Client Money and Asset Report
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
The difficult market conditions and the consequent increased chance of insolvency of regulated entities prompted the Financial Services Authority (FSA) to carry out firm visits over the last 6 months to a range of investment and insurance broker firms to assess their compliance with the client money rules contained in the Client Asset Sourcebook (CASS) of the FSA Handbook.
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EU/UK: The Committee of European Insurance and Occupational Pensions Supervisors and the Swiss Insurance Supervisor Agree to Enhance Supervisory Cooperation
By Troutman Pepper Locke on
The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) has recently announced that it has agreed to further enhance supervisory cooperation with the Swiss insurance supervisor, the Swiss Financial Market Supervisory Authority (FINMA).
Connecticut Jury Awards $14.7 Million Against Insurer for Violation of Unfair Trade Practices Act in Auto Body Shop Class Action Lawsuit; Continued Vitality of “Cigarette Rule” at Issue
In a class action lawsuit brought by various auto body shops and the Auto Body Association of Connecticut, a Connecticut jury recently rendered a $14.7 million verdict against an insurance company for allegedly violating the Connecticut Unfair Trade Practices Act, Conn. Gen. Stat. §42-110a et seq. (“CUTPA”).
UK: Anti-Suit Injunctions
By Troutman Pepper Locke on
Posted in Arbitration, United Kingdom
Shashoua and another v. Sharma [2010] EWCA Civ 15 concerned an application to the Court of Appeal by Sharma for permission to appeal a procedural aspect of the High Court’s decision in (1) Roger Shashoua (2) Rodemadan Holdings Ltd (3) Stancroft Trust Ltd v Mukesh Sharma [2009] EWHC 957 (Comm) (previously blogged here).
Broad New FTC Guidelines for Endorsements and Testimonials Create Risks for Manufacturers, Advertisers, Bloggers and Others
By Troutman Pepper Locke on
New revised Federal Trade Commission (FTC) guidelines for advertisements containing endorsements or testimonials focus attention on “new media” as an advertising venue. The guidelines require transparency and disclosure of any material relationship between the manufacturer and the endorser or poster.
SEC Tightens Custodial and Audit Requirements for Registered Investment Advisers who Control Client Assets
By Troutman Pepper Locke on
If you are a registered investment adviser who – directly or indirectly – has authority to obtain possession of client funds or securities (“custody”), the SEC has increased your compliance burden beginning March 12, 2010.