Insights
Henry Nelson Massey, chair of Day Pitney's Private Companies and Emerging Companies and Venture Finance practice groups, and Corporate and Business Law attorney Megan Tlusty co-author a February 5th article for Law360 that surveys the new data mining landscape and its implications for financial services firms. Technological advances now allow access to unprecedented amounts of consumer, competitor and industry data for analysis and interpretation, and financial services firms stand to benefit from the information. While data mining has long been practiced, Hank and Megan write that with its increased use and scope companies that do not "exercise reasonable precautions to protect sensitive information may violate specialized financial confidentiality laws or medical privacy laws." Financial firms "should establish controls and surveillance to address potential insider trading, privacy and other risks" in what is an increasingly regulated environment.
