Tom Sporkin Quoted in American Banker Article, "Will New York's Regulations for Symphony Take Hold?"
October 15, 2015
Tom Sporkin was quoted in Jacob Passy's American Banker article, "Will New York's Regulations for Symphony Take Hold?," on October 15, 2015.
Who's going to get the job of holding the keys, and how can regulators seize them when there's a problem to investigate?
Furthermore, is it such a good idea to create the role of keymaster anyway?
Those are some of the outstanding questions about the new regulatory framework issued on Wednesday, by the New York State Department of Financial Services, to govern the retention of messages sent using the new platform developed by Symphony Communications Services.
"If the industry and the regulators agree that a third party should hold the encryption key, then regulators can rest assured that they won't be deprived data that they are entitled to," said Thomas Sporkin, a partner at BuckleySandler and a former enforcement official with the Securities and Exchange Commission.
"With this approach, everyone benefits," Sporkin said.
As for the question of whether other bank regulators will adopt the New York guidelines, Sporkin said the agency should be commended for taking a lead role and other agencies probably should follow its lead.
"You see them as the first responder here," Sporkin said.
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