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On December 28, the New York State Department of Financial Services (DFS) issued an updated version of its first-in-the-nation cybersecurity regulation after having “carefully considered all comments submitted” during the comment period following the issuance of the original regulation in September. The comments received by the DFS included a strongly worded and detailed letter authored by banking and insurance industry groups. The updated draft is subject to an additional comment period of 30 days and the final version will become effective March 1, 2017. The updated proposed regulation provides significantly more wiggle room than the original version, shifting from an approach that enforces minimum standards to a risk-based approach with increased transition periods for compliance. A few highlights of the changes are summarized below:
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