Regulation

This edition of the Quarterly State Compliance Review looks at legislation of interest to corporate lawyers that recently went into effect, and looks at some recent decisions of interest from courts in Delaware, New York, and California.

The International Professional Practices Framework released last year by the IIA is intended to provide guidance for internal auditors, by seeking to focus on core principles. The framework identifies 10 core principles that describe or guide what an effective internal audit function should focus upon and to what it should adhere.

Courts Check Government Attempts to Extend the Statute of Limitations

Part Two of a Two-Part Article

When the SEC and other government regulatory agencies pursue civil enforcement actions against those accused of financial fraud, they often attempt to recover monetary penalties and fines for periods of time even outside the limitations period. This effort is being met with resistance by the courts. The authors conclude their discussion herein.

Law firms must be diligent about their information security — not just via protection through technology, but by training staff on what to look for and how to react to cybersecurity threats. Most security breaches arise out of human error or negligence. Educating users is one of the best defenses.

While it remains unclear both when the regulators will invoke their authority to enforce the nearly limitless strict liability provision of the rules and how they will determine the appropriate remedy, the recent settlements and the SEC's handling of exemptive relief petitions may provide some clues.

Most real estate practitioners are well acquainted with the Yellowstone injunction and its importance in preserving the status quo while allegations that a commercial tenant has breached its lease are litigated. But the third Yellowstone prong — timeliness of the motion — is especially important.

The Regulation was designed to promote the protection of customer information as well as the underlying information technology systems of regulated entities in light of the ever-increasing threat of cyber attacks.

The Medical Marijuana Act (MMA) puts Pennsylvania among the growing number of states permitting the use of marijuana for prescribed medicinal purposes. The MMA, like all state laws purporting to "legalize" marijuana use, squarely conflicts with federal law, which still considers marijuana to be a Schedule 1 substance under the Controlled Substances Act, with no legitimate medical uses.