FERPA
U.S. federal law protecting privacy of student education records
23 NYCRR 500
New York regulation for financial services cybersecurity
Quick Verdict
FERPA protects student records privacy in U.S. education via access rights and consent rules, enforced by funding loss. 23 NYCRR 500 mandates cybersecurity programs for NY financial firms with MFA, testing, and fines. Schools ensure privacy; banks build resilience.
FERPA
Family Educational Rights and Privacy Act of 1974
Key Features
- Grants rights to inspect, amend, and consent to education record disclosures
- Defines expansive PII including indirect identifiers and re-identification risks
- Requires 45-day access timelines and annual notifications of rights
- Enumerates specific exceptions like school officials and health emergencies
- Mandates disclosure recordkeeping and redisclosure restrictions
23 NYCRR 500
23 NYCRR Part 500 Cybersecurity Regulation
Key Features
- CEO/CISO dual annual compliance certification
- 72-hour cybersecurity incident notification
- Phishing-resistant MFA for high-risk access
- Comprehensive TPSP risk management contracts
- Annual penetration testing requirements
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
FERPA Details
What It Is
FERPA (Family Educational Rights and Privacy Act of 1974, 20 U.S.C. §1232g; 34 CFR Part 99) is a U.S. federal regulation establishing privacy protections for student education records. Its primary purpose is to grant parents and eligible students rights to access, amend, and control disclosure of personally identifiable information (PII), applicable to institutions receiving federal education funds. It employs a rights-based approach with consent requirements and enumerated exceptions.
Key Components
- Core rights: inspect/review within 45 days, amend inaccurate records, consent to disclosures.
- Definitions: broad education records, expansive PII (direct/indirect identifiers), directory information.
- Obligations: annual notices (§99.7), disclosure logs (§99.32), school official exceptions (§99.31).
- No formal certification; compliance enforced via Department of Education investigations.
Why Organizations Use It
- Mandatory for federal fund recipients to avoid funding loss and complaints.
- Mitigates breach risks, builds stakeholder trust, enables safe data sharing.
- Supports operations like vendor management, emergencies; enhances reputation.
Implementation Overview
Phased program: governance, data inventory, policies/training, access controls, vendor contracts, audits. Applies to K-12/postsecondary; no certification but requires auditable processes like logging and hearings.
23 NYCRR 500 Details
What It Is
23 NYCRR Part 500, the New York Department of Financial Services (NYDFS) Cybersecurity Regulation, is a mandatory state regulation for financial services entities. It sets minimum cybersecurity standards to safeguard nonpublic information (NPI) and information systems' confidentiality, integrity, and availability. The core approach is risk-based, mandating documented risk assessments to tailor programs.
Key Components
- **14 core requirementscybersecurity program, policy, CISO governance, access privileges, MFA, encryption, asset management, penetration testing, third-party oversight, incident response, and annual certification.
- Emphasizes governance with CEO/CISO dual-signature annual certification and five-year evidence retention.
- Enhanced obligations for Class A companies (e.g., >$20M NY revenue, >2,000 employees).
Why Organizations Use It
- Ensures legal compliance for NY-licensed banks, insurers, avoiding multimillion-dollar fines (e.g., Robinhood $30M).
- Reduces cyber incident risks via robust controls like phishing-resistant MFA.
- Builds trust, lowers insurance costs, provides competitive differentiation in finance.
Implementation Overview
- Phased roadmap: governance/CISO first, then MFA rollout, asset inventories, TPSP contracts by 2025 deadlines.
- Targets NY financial entities; scalable by size/complexity.
- DFS examinations, no universal certification but annual filings required. (178 words)
Key Differences
| Aspect | FERPA | 23 NYCRR 500 |
|---|---|---|
| Scope | Student education records privacy | Financial institutions cybersecurity program |
| Industry | U.S. education institutions | NY financial services licensees |
| Nature | Federal privacy law, funding-based | State cybersecurity regulation, mandatory |
| Testing | No formal testing; recordkeeping audits | Annual pen testing, vulnerability assessments |
| Penalties | Federal funding loss, complaints | Fines, consent orders, license actions |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about FERPA and 23 NYCRR 500
FERPA FAQ
23 NYCRR 500 FAQ
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