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MSP Regulation Is Right Around the Corner

A new bill recently passed in the state of Louisiana could have a significant impact on the MSP sector as a whole.

According to Louisiana Act 117 – Senate Bill 273, MSPs that manage infrastructure or end user systems for public bodies will now be required to register with the state.

Why Bill 273?


According to the bill, its purpose is to:

  1. Create a registration for managed service providers and managed security service providers doing business with a public body.

  2. Provide access for public bodies to obtain information on managed service providers and managed security service providers.

  3. Require managed service providers and managed security service providers to report cyber incidents and the payment of cyber ransom or ransomware.

Additionally, the bill also prohibits public bodies from doing business with an unregistered MSP, which will make registration an unavoidable legal requirement for any MSP looking to have a public body as one of its customers.

Long time coming


This move should not come as much of a surprise, as MSPs, who take on the responsibility of handling and protecting the data of numerous customers, have become increasingly popular targets for cyber attacks, including ransomware attacks.

The US as a whole has suffered greatly at the hands of ransomware in recent years. Baltimore was infamously hit by a ransomware attack in 2019 that cost the city $18.2 million. Louisiana itself was also a victim of multiple attacks last year, which hit four of its school districts and impacted several government offices.

What will this mean for MSPs?


Regulation, higher standards, and greater accountability. If you want to handle the data of a public body in the state of Louisiana, the state of Louisiana would like to evaluate you, vet you, and make sure you meet certain security requirements, before allowing you to do so.

And while this bill only affects MSPs operating in the state of Louisiana for now, it's not a stretch to expect such legislation to appear in other states across the US, and maybe even in other countries.

Louisiana MSPs will be able to begin registering themselves starting February 1st 2021, but no matter where you are in the world, if you're an MSP, it would be wise to start taking cybersecurity seriously right now.

How you can prepare


A good way to start would be to ensure that your clients are using strong passwords and two factor authentication, and that those passwords can only be accessed by authorized users.

Luckily, MYKI for MSPs allows you to do all that and more. Strong passwords can be created for each account with the built-in password generator, 2FA can be effortlessly set up and managed for any account, and features such as User Groups, Item Folders, and Security Policies can help control who has access to what accounts.

Sign up for MYKI for MSPs today and start taking control of your digital identity.

GET STARTED HERE

MSP Regulation Is Right Around the Corner
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