Financial Services Firms Face Added Pressure

On Guard: Vendors of Data Companies Likely to Feel Compliance Pressure
– Advertising Age

Advertising Age interviewed Manatt's Donna Wilson, co-chair of the firm's Privacy and Data Security practice, for an article on the increasing pressure that data companies are placing on outside vendors.

Advertising Age reports that this year guarantees to bring a surge in the use of data-security services, and some expect that companies that collect and manage a lot of data will keep a watchful eye outside their own operations towards their vendor partners. The added pressure on vendors is spurred in part by a realization that vendors are sometimes at fault for data breaches. Data companies also expect legislative and regulatory attention to shift away from a federal privacy law to a federal data-breach law.

Financial-services firms, already not strangers to information-security compliance, may have to up their games, said Wilson. Financial-services vendors, she said "are going to be vetted more and that's not necessarily a bad thing."

Read the article here