DROPLETS
The Trump administration has announced a new 25% tariff on certain Chinese products and directed CFIUS to tighten scrutiny of Chinese investment in sensitive US technology.
Following a Section 301 investigation into China's technology transfer and intellectual property practices, the White House on March 22, 2018, directed multiple agencies to take action. The U.S. Trade Representative (USTR) will impose an additional 25% ad valorem tariff on a list of Chinese products, set to include aerospace, information and communication technology, and machinery. The USTR will also pursue a case against China's licensing practices at the World Trade Organization. This development is critical for counsel advising clients with Chinese supply chains, as the tariffs will significantly raise import costs. Furthermore, the memorandum directs the Committee on Foreign Investment in the United States (CFIUS) to address Chinese investment aimed at acquiring sensitive U.S. technologies, signaling a more challenging environment for inbound M&A. Affected importers should monitor the Federal Register for the finalized product list and prepare to substantiate country-of-origin claims for goods with multinational production histories.
New York provides a statutory fix for financial contracts governed by its law that lack effective fallback language for the cessation of LIBOR, mandating a shift to a recommended benchmark and providing a safe harbor from litigation.
New York has enacted the first state law in the U.S. to manage the transition away from the London Inter-bank Offered Rate (LIBOR). The law provides a statutory solution for legacy financial contracts governed by New York law that have inadequate or no provisions for replacing LIBOR once it is discontinued. For these "tough legacy" contracts, the law mandates the use of the benchmark replacement recommended by the Federal Reserve, the New York Fed, or the Alternative Reference Rates Committee, which is currently the Secured Overnight Financing Rate (SOFR).
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The new law federally legalizes industrial hemp and its derivatives, including CBD, shifting primary regulatory authority to the Department of Agriculture and the states.
The Agriculture Improvement Act of 2018, known as the 2018 Farm Bill, was signed into law, fundamentally altering the legal landscape for cannabis. The bill explicitly removes hemp from the definition of marijuana under the Controlled Substances Act (CSA), thereby legalizing the plant and its derivatives at the federal level. To qualify as hemp, the plant and its products, including extracts and cannabinoids, must contain a delta-9 tetrahydrocannabinol (THC) concentration of no more than 0.3 percent on a dry weight basis.
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The Capital Requirements Directive IV package will limit variable pay for key financial-sector staff to 100% of fixed pay, or up to 200% with shareholder approval.
The European Union has formalized its "bonus cap" for bankers with the publication of the Capital Requirements Directive IV (CRD IV). The new regime limits variable remuneration to 100% of an employee's fixed salary, though this can be increased to 200% with sufficient shareholder approval. These rules represent a significant intervention in the financial industry, directly impacting compensation structures for senior management, risk-takers, and key control-function staff across the bloc.
Major-firm clients, including all EU credit institutions, investment firms, and EU subsidiaries of global banks, must now overhaul their remuneration policies to comply. The changes will require careful review of existing employment arrangements and potentially contentious shareholder votes to allow for the higher 2:1 ratio.
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Regulators set firm 2021 and 2023 deadlines for phasing out the benchmark rate, and key industry groups have now published standardized fallback and replacement terms.
The transition from LIBOR to alternative reference rates has reached a critical phase. In March 2021, the UK’s Financial Conduct Authority formally announced the final cessation dates for all LIBOR settings, with most U.S. dollar tenors ending June 30, 2023, and others by December 31, 2021. This announcement was a key milestone, constituting an "index cessation event" under ISDA protocols and fixing the crucial credit spread adjustment between LIBOR and its successor, the Secured Overnight Financing Rate (SOFR). For counsel at major firms, these developments remove prior uncertainty and create urgency. U.S. regulators have directed banks to stop originating new USD LIBOR loans by the end of 2021. In response, standard-setting bodies like the Alternative Reference Rates Committee (ARRC) and the Loan Syndications and Trading Association (LSTA) have released updated hardwired fallback language and SOFR-based concept credit agreements. The immediate task for market participants is to amend legacy contracts and adopt the new SOFR-based standards for new transactions.
A landmark ruling overturned class certification for 1.5 million female employees and significantly tightened the 'commonality' standard for all plaintiffs.
The U.S. Supreme Court has reshaped the landscape for class action litigation, reversing certification for a historic 1.5 million-member class of female Wal-Mart employees alleging gender discrimination. In its 5-4 decision in Wal-Mart Stores, Inc. v. Dukes, the Court held that the plaintiffs failed to meet the commonality requirement of Federal Rule of Civil Procedure 23(a). The majority found the plaintiffs’ theory—that Wal-Mart’s discretionary “corporate culture” led to biased pay and promotion decisions by local managers—was insufficient to prove all plaintiffs suffered the same injury. Writing for the Court, Justice Scalia stated that the decentralized, subjective decision-making was the “opposite of a uniform employment practice” that could tie the claims together. This ruling significantly raises the bar for plaintiffs, requiring more than common allegations; they must show a common contention capable of class-wide resolution. The decision provides defendants a powerful tool to defeat certification, particularly in large-scale employment disputes, and has broad implications fo
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The Bribery Act 2010, called the "toughest enforcement standard in the world," creates a new corporate offense of failing to prevent bribery and has significant extraterritorial implications.
The United Kingdom has enacted the Bribery Act 2010, a sweeping anti-corruption law widely considered to be stricter than the U.S. Foreign Corrupt Practices Act. The new legislation significantly expands the scope of bribery offenses and has a broad extraterritorial reach, affecting non-UK companies that carry on a business or part of a business in the UK. Sophisticated clients and counsel must take note of several key changes. The Act creates a new strict-liability corporate offense of failing to prevent bribery by an associated person, with the only defense being the implementation of 'adequate procedures.' Penalties are severe, including unlimited fines for companies and up to 10 years imprisonment for individuals. Unlike the FCPA, the Act criminalizes bribery in the private sector (commercial bribery) in addition to public-official bribery, and it explicitly prohibits small 'facilitation payments.' Given the rising trend of cross-border enforcement, multinational corporations should urgently review their global anti-corruption programs to ensure they meet this new, higher standar
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The U.S. has announced the Joint Comprehensive Plan of Action, but OFAC has clarified that broad sanctions against Iran remain in effect pending verification of its nuclear-related commitments by the International Atomic Energy Agency.
The United States and other world powers have reached a landmark agreement with Iran, the Joint Comprehensive Plan of Action (JCPOA), to ensure its nuclear program is exclusively peaceful. This historic deal creates a potential pathway for relief from the extensive U.S. and international sanctions that have isolated Iran's economy, which could eventually open significant opportunities for clients in sectors from energy and aviation to finance and consumer goods.
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Following the Supreme Court's Wayfair decision, California will require remote sellers with over $100,000 in sales or 200 transactions into the state to collect and remit sales tax starting April 1, 2019.
Responding to the U.S. Supreme Court's landmark decision in South Dakota v. Wayfair, the California Department of Tax and Fee Administration has announced it will require out-of-state retailers to collect and remit state sales and use tax beginning April 1, 2019. The Wayfair ruling overturned the long-standing physical-presence requirement for sales tax nexus, expanding states' authority to tax remote sales.
This policy shift has immediate and significant compliance implications for e-commerce and other businesses nationwide that sell into California, the largest consumer market in the United States. Companies without a physical presence in the state must now assess whether they meet the new economic nexus thresholds: more than $100,000 in sales or 200 separate transactions for delivery into California within the current or preceding calendar year.
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The UK's Financial Conduct Authority has announced that it will no longer compel panel banks to submit LIBOR rates after 2021, beginning a multi-year transition for trillions of dollars in financial contracts.
The UK Financial Conduct Authority (FCA) has announced that it will no longer persuade or compel banks to submit rates for the London Interbank Offered Rate (LIBOR) after the end of 2021. The decision marks the beginning of the end for the benchmark, which underpins more than $350 trillion in financial instruments globally, including derivatives, corporate loans, and securitizations. According to the FCA, the move was necessitated by a lack of active underlying transaction data to support the benchmark, which made it vulnerable to the kind of manipulation that led to prior scandals and billions in fines.
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The Supreme Court's decision in South Dakota v. Wayfair overturns a half-century of precedent, exposing remote sellers to sales and use tax collection duties in states where they have no physical presence.
The U.S. Supreme Court's decision in South Dakota v. Wayfair has overturned the long-standing physical presence requirement for sales tax nexus, a standard that stood for over 50 years since the Quill Corp. v. North Dakota ruling. This historic shift means that states and local governments can now require internet, mail-order, and other remote sellers to collect and remit sales and use taxes even if the seller has no physical offices, employees, or inventory within the jurisdiction. The ruling creates substantial new compliance burdens for businesses, especially small and medium-sized enterprises, which must now navigate thousands of different tax regimes, each with its own rates, rules, and filing requirements. The decision affects sellers of physical goods, services, and digital products, fundamentally altering the tax landscape for e-commerce. Affected businesses must now urgently assess their nexus footprint on a state-by-state basis and implement systems for tax collection and remittance to mitigate exposure to audits and penalties.
The UK Finance Act 2015 has received Royal Assent, introducing a 25% “diverted profits tax” aimed at multinationals that conduct extensive business in the UK while avoiding a local taxable presence.
The UK's Finance Act 2015 received Royal Assent on March 26, 2015, enacting a new 25% diverted profits tax (DPT) aimed at changing corporate behavior. The tax is set intentionally higher than the UK's 20% corporation tax rate. Counsel for multinationals should care because the DPT creates significant new risks for two common structures: foreign companies with substantial UK business activities structured to avoid a UK permanent establishment, and UK-based entities using payments to low-tax affiliates to reduce taxable profits.
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The Supreme Court unanimously held that companies may have a duty to disclose adverse event reports even if they are not yet statistically significant.
The U.S. Supreme Court unanimously held in Matrixx Initiatives v. Siracusano that statistical significance is not a prerequisite for adverse event reports to be considered "material" in a securities fraud claim. The Court rejected the defendant's proposed bright-line rule, which would have shielded companies from liability for non-disclosure unless there was a statistically significant link between a product and negative effects. Instead, the Court reaffirmed the context-dependent standard from Basic Inc. v. Levinson, focusing on whether a reasonable investor would view the information as having "significantly altered the 'total mix' of information available." For public companies, particularly in the pharmaceutical and medical device industries, this decision means that early-stage safety signals or a small number of troubling reports can be legally material. The ruling involved Zicam, a cold remedy allegedly linked to loss of smell, which accounted for 70% of the company's sales. Counsel should advise clients that materiality is a fact-specific inquiry and that overlooking adve
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The U.S. Supreme Court is considering whether to discard the long-standing physical-presence requirement for state sales tax collection in a case that could reshape e-commerce.
The U.S. Supreme Court heard oral arguments on April 17, 2018, in South Dakota v. Wayfair, Inc., a case that could fundamentally alter the landscape of e-commerce taxation. The court is considering whether to overturn its 1992 precedent in Quill Corp. v. North Dakota, which requires a business to have a physical presence in a state to be compelled to collect and remit its sales and use taxes. South Dakota argues the rise of internet retail has rendered the Quill standard obsolete, depriving states of significant tax revenue and disadvantaging local businesses. For companies selling online, abandoning the physical presence test would trigger complex and costly compliance obligations across thousands of state and local tax jurisdictions nationwide. During arguments, the justices weighed the principles of stare decisis against the evolution of commerce, also raising concerns about the potential burden on small businesses. A decision is expected by late June 2018, and businesses engaged in remote selling should monitor the outcome closely to prepare for a potentially seismic shift in the
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Texas Gov. Greg Abbott has ordered ERCOT and the state's PUC to suspend all new data center interconnections pending a comprehensive audit of their power, water, and community impacts.
Citing an overwhelming surge in demand, Texas Governor Greg Abbott on August 3, 2026, directed state energy regulators to halt all new data center connections to the electric grid. The order requires the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT) to conduct a comprehensive audit of every data center project in the interconnection queue before any can proceed. The directive follows reports that data centers account for roughly 90 percent of 474 gigawatts in new power requests—more than five times ERCOT’s record peak demand. The indefinite pause creates profound uncertainty for developers, investors, and technology companies with projects in Texas, a major hub for the industry. The audit’s scope is extensive, covering public financial support, water consumption, ownership structure, and community impact, signaling a new era of heightened scrutiny for large-load electricity consumers. Counsel for affected projects must now navigate an undefined review process, as the governor's letter set no deadline for completion and warned that non-
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Broker-dealers, investment advisers, and issuers serving retail investors face heightened SEC scrutiny as a new dedicated working group targets offering frauds, manipulation, and fiduciary breaches.
On July 7, 2026, the SEC's Division of Enforcement launched a Retail Fraud Working Group to centralize expertise and resources for pursuing misconduct affecting individual investors. The group will focus on offering frauds, pump-and-dump schemes, market manipulation, and breaches of duties by investment advisers and broker-dealers. It will also coordinate with domestic and foreign regulators, partner with the Office of Investor Education and Advocacy, and use data analytics for proactive case generation. Leadership is provided by Deputy Director Kate Zoladz and Assistant Director Kim Frederick. For market participants, the signal is clear: marketing materials, retail-facing communications (including social media), trading surveillance, fiduciary policies, complaint handling, and front-line training are all areas ripe for SEC examination. Firms in microcap securities, retail trading platforms, private offerings to individuals, and online-distributed products should expect especially close attention as the working group staffs up and brings its first matters.
Cosmetics and personal care product manufacturers using DEA no longer need to comply with California Prop 65 cancer warning requirements for the ingredient, and the ruling creates a replicable legal strategy to challenge other Prop 65 warnings based on contested science.
On June 23, 2026, the U.S. District Court for the Eastern District of California entered a permanent injunction barring the California Attorney General from enforcing Proposition 65 cancer warning requirements for diethanolamine (DEA) in cosmetics and personal care products, via a stipulated judgment with the Personal Care Products Council. The ruling is the fourth recent First Amendment victory against Prop 65 warning mandates, following successful challenges to glyphosate, acrylamide, and titanium dioxide requirements. The court found the DEA warning was not purely factual, as it relied solely on an IARC 'possible carcinogen' classification with no independent human or consistent animal study support. In-house counsel for DEA-containing personal care product manufacturers can immediately cease Prop 65 warning compliance for the ingredient, and may assess whether other Prop 65 listed chemicals with similarly limited scientific backing are viable for challenge under the same compelled speech theory.
Public companies, private funds, and their auditors must act as the SEC’s new dedicated accounting fraud enforcement unit signals a heightened priority on pursuing financial reporting and auditing misconduct, raising enforcement risk for related violations.
On August 5, 2026, the SEC established the Financial Reporting and Accounting Unit within its Division of Enforcement, staffed by attorneys and specialized accounting experts to pursue misconduct related to financial reporting, accounting, and auditing. The unit supersedes the Division’s earlier announced SOX Group, aligns with SEC leadership’s stated
Broker-dealer member firms and their counsel must monitor these FINRA reform recommendations, as full implementation would fundamentally reshape how firms respond to enforcement inquiries, challenge information requests, and negotiate resolution terms.
On June 30, 2026, FINRA published a report from independent outside experts commissioned as part of its FINRA Forward initiative, outlining 24 recommendations to overhaul its enforcement program. Core proposed changes include adopting statute of limitations for most violations (tied to federal securities law timelines where applicable, or a general 5-year period for other violations), a formal process for firms to challenge overbroad Rule 8210 information requests before a neutral decision-maker, revised Wells notice due process rules including 30-day minimum response windows and immediate access to testimony transcripts, and updated cooperation credit guidance that eliminates the current 'extraordinary' standard for credit. While the recommendations do not immediately alter binding FINRA rules, firms with active enforcement matters can cite the report’s principles now to push back on unreasonable information requests and negotiate more favorable resolution terms, and should track implementation progress to invoke the proposed changes as they are adopted.
The SEC conformed its rules to the Dodd-Frank Act, permanently exempting non-accelerated filers from obtaining an external auditor attestation on internal controls.
The SEC has adopted rule changes to conform with the Dodd-Frank Act, which permanently exempts non-accelerated filers from Section 404(b) of the Sarbanes-Oxley Act (SOX). This relieves smaller public companies of the requirement to include in their annual reports an attestation from their external auditor on the effectiveness of internal controls over financial reporting (ICFR). The relief was enacted in Section 989G of the Dodd-Frank Act, which created a new Section 404(c) of SOX.
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A newly proposed SEC rule would create a long-sought safe harbor from broker-dealer registration for certain intermediaries who help private companies raise capital.
The U.S. Securities and Exchange Commission has proposed a new exemptive order to create a clear safe harbor for "finders" who assist private companies in raising capital from accredited investors. This proposal addresses a persistent legal gray area where intermediaries, who are not registered as broker-dealers, have faced regulatory risk for connecting issuers with potential funding sources. Historically, their involvement could give disgruntled investors a basis for rescission, jeopardizing the financing.
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New IRS guidance confirms that for qualifying arrangements, U.S. federal income tax is generally due only on net cash exchanged, not on the imputed value of the licenses.
The IRS has issued Revenue Procedure 2007-23, creating a safe harbor for the tax treatment of certain patent cross-licensing agreements and resolving significant industry uncertainty. The guidance allows taxpayers to use a 'Net Consideration Method' for 'Qualified Patent Cross-Licensing Arrangements' (QPCLAs), meaning U.S. federal income tax generally applies only to the net cash consideration exchanged between the parties, not to the imputed value of the licenses themselves. This is a significant relief for technology, pharmaceutical, and other IP-intensive companies, as it aligns with longstanding common practice and avoids the complex and potentially costly valuation of non-cash patent exchanges. To qualify for this treatment, an arrangement must be a nonexclusive, nontransferable agreement between unrelated parties, covering only patent rights with no more than de minimis other intellectual property. Counsel should advise clients to structure new cross-licenses to meet the QPCLA criteria and review the status of existing agreements. The tax treatment of arrangements that do not q
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China has implemented a nationwide record-filing system for foreign investments not on a new 'Negative List,' replacing the previous, more burdensome approval-based administration.
China has fundamentally reformed its administrative system for foreign investment, shifting from a universal pre-approval requirement to a more streamlined record-filing process for many businesses. The change, which was first tested in pilot free trade zones, now applies nationwide. Under the new regime, foreign investments are categorized based on a 'Negative List.' Projects falling outside this list—which covers restricted and prohibited sectors, along with certain encouraged industries having specific equity or senior management requirements—are no longer subject to the lengthy approval process with the Ministry of Commerce. This is a significant development for foreign investors, as it reduces administrative burdens, costs, and uncertainty for a wide range of ventures. Counsel for clients investing in China should immediately assess whether current or planned projects fall on the Negative List, as those will still require traditional approvals. It is also critical to remember that this reform only affects commerce bureau approvals; consent from other government agencies may stil
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A New York appellate court has affirmed the "unequivocal right" of former directors and officers to access attorney-client privileged documents created during their tenure when needed to defend themselves in a subsequent action.
New York's Appellate Division, First Department, ruled in People v. Greenberg that former corporate directors and officers have an "unequivocal right" to access attorney-client privileged documents created during their service when their conduct is later questioned. The case involved former AIG executives who sought legal memoranda from the company to support their defense against government allegations, arguing they had relied in good faith on advice of counsel.
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A new decree lowers the threshold for mandatory foreign direct investment screening to 10% for acquirers from outside the EU and EEA, now including stakes in French companies listed on foreign stock exchanges.
France has broadened the scope of its foreign direct investment (FDI) screening regime by extending a key rule to French companies listed on foreign stock exchanges. A governmental decree now applies the lowered 10% voting-rights acquisition threshold to trigger a mandatory FDI review for non-EU and non-EEA investments in these companies. This measure, initially introduced during the COVID-19 pandemic and repeatedly extended, was previously focused on companies listed within Europe.
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The state has temporarily halted approvals for new data center projects pending a statewide audit of the industry's impact on the power grid and other resources.
Texas has paused approvals for new data centers to conduct a statewide audit. The move stops short of an outright ban but creates significant uncertainty for pending and future projects in one of the country's most active markets for data infrastructure.
Sophisticated counsel and their clients care because Texas has been a critical growth hub for data center development, driven by its favorable business climate and energy resources. This moratorium could disrupt expansion plans for technology, AI, and cryptocurrency companies that rely on large-scale data processing. The audit's findings could lead to new, more stringent regulations on energy consumption, water usage, and project location, potentially increasing costs and creating delays for clients across the data infrastructure pipeline.
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For the first time in 30 years, the Monetary Authority of Singapore has ordered a merchant bank, BSI Bank, to cease operations due to serious anti-money laundering breaches linked to the 1MDB scandal.
Singapore’s financial regulator, the Monetary Authority of Singapore (MAS), has withdrawn the license of BSI Bank Limited, ordering it to cease operations in the country. The regulator also imposed a S$13.3 million fine for “serious breaches of anti-money laundering requirements, poor management oversight... and gross misconduct.” Six members of the bank's senior management are facing potential prosecution. This drastic step, the first of its kind in Singapore in over 30 years, is linked to the global investigation into Malaysia's 1MDB state investment fund.
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The Indian government has significantly eased foreign direct investment restrictions in sectors including defense, aviation, pharmaceuticals, and single-brand retail.
The Government of India has announced a significant wave of reforms to its foreign direct investment (FDI) policy, aiming to make the country a more attractive destination for international capital. The changes impact several key sectors, creating new opportunities for foreign investors. Under the new policy, 100% FDI is now more accessible in the defense sector, as the previous requirement for access to “state-of-the-art” technology for investments over 49% has been removed. The pharmaceutical sector will now permit up to 74% FDI through the automatic route, without prior government approval. Other major changes include allowing 100% FDI in scheduled airlines (though foreign airline ownership is capped at 49%), existing airport projects, and the trading of Indian-made food products. For single-brand retail, the government has relaxed local sourcing requirements for three years, with a possible five-year extension. These sweeping reforms are expected to stimulate economic growth and job creation, and counsel should advise clients to reassess their India investment strategies in respo
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The Treasury Department has proposed rules for the IRA's $7,500 clean vehicle tax credit, clarifying the strict North American and FTA-partner sourcing requirements for battery components and critical minerals that automakers must now meet.
The U.S. Treasury Department has issued a notice of proposed rulemaking to clarify the complex sourcing requirements for the Section 30D new clean vehicle tax credit, as amended by the Inflation Reduction Act. The guidance is critical for automakers, battery manufacturers, and mineral suppliers, as the full $7,500 credit per vehicle is now split into two parts, each with stringent prerequisites: one for critical minerals and another for battery components.
Sophisticated counsel and clients in the automotive and energy sectors care deeply because these rules dictate which vehicles will be eligible for a credit that heavily influences consumer demand. Compliance requires a fundamental restructuring of supply chains to favor processing and manufacturing in North America or in countries with which the U.S. has a free trade agreement. The proposed regulations outline multi-step procedures for calculating the value percentages for both minerals and components. Counsel should analyze these proposed tests to advise on supply-chain strategy and consider submitting comments on the rulemaking.
At a recent Financial Stability Oversight Council meeting, top US financial regulators strongly endorsed SOFR while warning that banks choosing other rates must justify their appropriateness and understand their underlying weaknesses.
Senior U.S. financial regulators have issued a coordinated warning against adopting certain credit-sensitive alternatives to LIBOR, strongly reinforcing their preference for the Secured Overnight Financing Rate (SOFR). During a Financial Stability Oversight Council meeting, Treasury Secretary Janet Yellen, Fed Vice Chair Randal Quarles, and others cautioned that some proposed replacement rates may replicate the weaknesses that doomed LIBOR, particularly where the volume of derivatives could dwarf the underlying transactions.
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A new bill would create a mandatory notification and review system for foreign investments on national security grounds, similar to CFIUS in the United States.
The UK government has introduced the National Security & Investment Bill, which proposes a fundamental overhaul of the country's approach to screening foreign direct investment (FDI). If passed, the bill will establish a new standalone regulatory regime, moving authority from the Competition and Markets Authority to a new Investment Security Unit within the Department for Business, Energy & Industrial Strategy (BEIS).
This represents a significant shift for investors, creating a framework more closely aligned with the Committee on Foreign Investment in the United States (CFIUS). The legislation introduces a hybrid notification system and a broad definition of "trigger events," which could include acquiring more than 15% of shares or votes, or gaining "material influence" over a company. The rules would also apply to non-UK entities that supply goods or services in the UK. This change will add a critical layer of regulatory risk and timing considerations for a wide range of corporate and M&A transactions involving UK assets, requiring dealmakers to build a new approval process into t
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Proposed legislation would abolish the torts of champerty and maintenance to permit third-party funding for international arbitrations, aiming to boost the city-state's competitiveness as a global dispute resolution hub.
Singapore's Ministry of Law has introduced a draft Civil Law (Amendment) Bill and accompanying regulations to formally legalize third-party funding (TPF) for international arbitration. The proposed legislation would abolish the common law torts of champerty and maintenance that have historically prohibited such financing arrangements in the jurisdiction. The reform is a strategic move to bolster Singapore’s standing as a leading international arbitration hub, bringing its legal framework in line with competing jurisdictions like England and Australia. For major corporate clients and their counsel, this development provides a crucial new tool for financing and de-risking high-value commercial disputes. It also presents new strategic considerations for law firms advising on venue selection and case management. The proposed regulations outline specific qualification criteria for funders, requiring that funding is their primary business and that they possess sufficient accessible capital. Counsel should monitor the final form of the legislation following the close of the public consultat
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The US Securities and Exchange Commission announced a new specialized unit within its Division of Enforcement dedicated to pursuing misconduct in accounting, financial reporting, and auditing.
The US Securities and Exchange Commission has established a new specialty group within its Division of Enforcement, the Financial Reporting and Accounting Unit, to concentrate on fraud and misconduct in corporate accounting and auditing. Announced on August 5, 2026, the unit's creation signals a heightened focus on the integrity of financial reporting by public companies. For corporate counsel and their clients, this development suggests the agency is dedicating more specialized resources and expertise to uncover and prosecute complex accounting schemes. This may lead to an uptick in investigations and enforcement actions against companies, their executives, and their auditors. The move underscores the critical importance of robust internal controls over financial reporting. BigLaw practitioners should advise clients to monitor the first wave of cases from this unit to gauge its enforcement priorities and to ensure their own compliance and disclosure protocols are rigorous.
A US federal appeals court has again applied the "effective vindication" doctrine to find an ERISA plan's arbitration provision unenforceable, increasing class-action risk for plan sponsors.
The US Court of Appeals for the Ninth Circuit has again invalidated an arbitration clause in an employee benefit plan, continuing a trend of judicial skepticism toward provisions that limit statutory remedies under the Employee Retirement Income Security Act (ERISA). Applying the "effective vindication" doctrine, the panel found the clause unenforceable because it prevented plan participants from seeking remedies that are expressly available under the federal statute, effectively denying them their substantive rights.
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Recent FBI arrests of NBA figures, including a head coach and a player, for illegal gambling activities highlight the effectiveness of monitoring and reporting protocols in the regulated US sports-betting market.
The FBI has arrested several NBA figures, including Portland Trailblazers head coach Chauncey Billups and Miami Heat guard Terry Rozier, on charges related to a sports gambling scheme. The investigation reportedly centers on suspicious wagering activity from March 2023, when sportsbooks and independent monitor U.S. Integrity flagged an unusual volume of bets on Rozier underperforming just before he left a game with an injury. The alert, made under state-mandated reporting requirements, demonstrates the intended function of the legal sports-betting framework. This high-profile enforcement action is a critical development for clients in the gaming industry, as it validates the integrity-monitoring systems they are required to maintain. For sports leagues and teams, it underscores the persistent risks of gambling-related scandals and the FBI's focus on the expanding legal wagering market. Counsel should monitor the indictments and any resulting policy changes from leagues or regulators, particularly concerning the heightened security risks associated with individual player proposition b
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New guidance suggests that certain operating-asset data center deals are not 'asset-backed securities' under the Exchange Act, potentially exempting them from key regulations.
The SEC staff has issued guidance clarifying a key regulatory question in the rapidly growing data center securitization market. Responding to an industry inquiry, the staff addressed whether securities issued by an entity that owns and operates data center facilities should be classified as “asset-backed securities” (ABS) under the Securities Exchange Act. The analysis distinguishes these operating-asset or “whole business” structures from traditional securitizations backed by a discrete pool of self-liquidating financial assets like leases or loans. The guidance suggests that where repayment depends on the active management and net operating cash flow of the underlying facilities, the securities may not meet the Exchange Act’s definition of ABS. For sponsors and issuers, this clarification is significant. It could mean that key securitization-specific requirements—including Regulation RR risk retention and various disclosure and reporting rules—do not apply, potentially streamlining execution and reducing costs. Counsel should now evaluate existing and future transaction structures
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Recent enforcement actions targeting compliance and custody-rule violations signal a heightened SEC focus on the investment adviser community.
The SEC has brought and settled administrative proceedings against six registered investment advisers (RIAs) in a late-October enforcement sweep, signaling a significant new focus. Three firms were sanctioned for compliance program deficiencies under Advisers Act Rule 206(4)-7, with violations including the failure to conduct annual reviews and making misleading statements in marketing materials and Form ADV. Three other advisers were sanctioned for violating the custody rule, which requires specific controls to protect client assets. These actions align with recent public statements from SEC officials that its Office of Compliance Inspections and Examinations (OCIE) would target the investment adviser community. The sanctions included significant fines and undertakings, such as hiring third-party compliance consultants and notifying clients of the violations. Counsel should advise RIA clients to proactively review their compliance policies and custody arrangements in anticipation of heightened regulatory scrutiny.
An SEC staff accounting bulletin requires banks to hold customer crypto on-balance-sheet, a capital-intensive treatment that is preventing them from serving as custodians for new spot crypto ETPs.
The SEC's Staff Accounting Bulletin 121 (SAB 121), issued in March 2022, requires institutions to record crypto-assets they hold for customers as both an asset and a liability on their own balance sheets. This on-balance-sheet treatment is a significant departure from the handling of traditional custodied assets, such as securities, which are kept off-balance-sheet. For regulated banks, the accounting directive inflates their balance sheets, which in turn triggers higher capital reserve requirements under banking rules.
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The Treasury Department's Office of Foreign Assets Control has published new regulations implementing the Global Magnitsky Act, detailing prohibitions and exemptions for dealings with persons involved in human rights abuse or corruption.
The U.S. Treasury's Office of Foreign Assets Control (OFAC) has published regulations to implement the Global Magnitsky Human Rights Accountability Act and Executive Order 13818. The rules, codified at 31 C.F.R. Part 583, formalize and detail the U.S. sanctions regime targeting foreign persons designated for involvement in serious human rights abuse or significant corruption. These individuals and entities are added to OFAC's Specially Designated Nationals (SDN) List under the identifier “[GLOMAG],” effectively blocking their property and prohibiting U.S. persons from transacting with them.
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The agency is seeking comment on retroactively applying national-security restrictions to already-authorized unmanned aircraft systems and surveillance equipment.
The U.S. Federal Communications Commission (FCC) has initiated proceedings to retroactively prohibit the importation and marketing of certain foreign-made technology that, despite having prior authorization, is now on its "Covered List" of equipment deemed a national security risk. The proposed actions, detailed in public notices, specifically target unmanned aircraft systems (UAS) and surveillance equipment from manufacturers including DJI and Autel Robotics. This follows the FCC's addition of these product categories to the list in December 2025.
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The U.S. Treasury's Financial Crimes Enforcement Network published 16 new or updated FAQs clarifying compliance obligations under the Corporate Transparency Act.
The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) on April 18, 2024, updated its extensive FAQ guidance on the Corporate Transparency Act (CTA). The update includes 14 entirely new questions and two revised answers, addressing several areas of uncertainty for companies navigating the new beneficial ownership information (BOI) reporting rules that took effect this year.
Sophisticated counsel and their clients care because the CTA is a complex law with steep civil and criminal penalties for non-compliance. The new guidance provides critical clarity on topics including the reporting status of S-corporations and entities not formed by a state filing, how to identify beneficial owners when ownership is held through trusts, and how reporting obligations apply when a company's eligibility for an exemption fluctuates. The FAQs also address access to the BOI database by federal, state, and foreign government agencies. Companies and their advisors should review the new guidance to ensure their compliance approach aligns with FinCEN's latest interpretations, particularly regard
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The Delaware Court of Chancery invalidated a seller's post-closing release for lack of consideration and an indefinite indemnification obligation for violating Delaware corporate law.
In a key decision for M&A dealmakers, the Delaware Court of Chancery invalidated two common post-closing obligations imposed on a selling stockholder. The case involved a merger where the seller was required to sign a letter of transmittal containing a broad release of claims against the acquirer and an indefinite indemnification obligation. The court struck down the release because it was requested after the merger had already closed—a point at which the seller was already entitled to its consideration—meaning there was no new consideration for the release. More significantly, the court found that the indemnification provision, which survived indefinitely and could claw back the seller's merger consideration at any point, violated the Delaware General Corporation Law. The court reasoned this structure made the total merger consideration indeterminable, contravening statutory requirements for certainty. Corporate and private equity counsel should take note, as the ruling highlights critical structuring risks for acquirers seeking post-closing protection. Acquirers cannot use letters
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With a Jan. 1, 2025, deadline looming for millions of companies to file beneficial ownership reports, counsel should advise clients to file soon to avoid penalties and a potential system crash.
Millions of U.S. entities in existence and foreign entities registered to do business in the U.S. before 2024 face a January 1, 2025, deadline to file their initial Beneficial Ownership Information Reports (BOIRs) with the Treasury's Financial Crimes Enforcement Network (FinCEN). The Corporate Transparency Act (CTA) mandates these filings to disclose the identities of all beneficial owners, with failure to comply carrying potential civil and criminal penalties.
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The Securities and Exchange Commission has formed a new Retail Fraud Working Group within its Enforcement Division to enhance its focus on protecting individual investors.
The U.S. Securities and Exchange Commission's Division of Enforcement has announced the formation of a new Retail Fraud Working Group, signaling a heightened commitment to protecting individual investors. This initiative underscores the agency's previously stated priority of policing misconduct in the retail market and suggests a more coordinated and strategic approach to enforcement in this area.
For sophisticated counsel and their clients, particularly broker-dealers, investment advisers, and any public companies interacting with retail investors, this development is significant. The creation of a dedicated working group indicates that the SEC is likely to devote more resources to investigating fraud affecting this group, potentially leading to an increase in examinations, inquiries, and enforcement actions. Firms should anticipate greater scrutiny of their marketing materials, sales practices, and disclosures aimed at retail participants.
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In-house counsel for U.S. solar developers, semiconductor manufacturers, and polysilicon importers must act to mitigate cost increases and supply chain disruptions from new Section 232 tariffs and minimum import prices on polysilicon.
On August 6, 2026, the U.S. government issued a proclamation imposing Section 232 national security tariffs and minimum import prices (MIPs) on imported polysilicon, a core input for solar panels and semiconductor chips. The policy is intended to boost domestic polysilicon production but will raise input costs for downstream buyers that rely on imported supply. Affected in-house counsel should first review existing supply contracts for price adjustment or force majeure clauses, assess eligibility for tariff exclusion requests, and evaluate alternative domestic or third-country polysilicon sourcing options to reduce cost and supply disruption risks.
In-house counsel overseeing brand protection and trademark enforcement programs must revise their playbooks, as a recent adverse ruling in Jack Daniel’s long-running 'Bad Spaniels' parody case has significantly raised the legal bar for successful trademark tarnishment claims, limiting a core tool companies use to protect brand reputation from disparaging third-party uses.
The decades-long trademark dispute between Jack Daniel’s and the 'Bad Spaniels' dog toy parody concluded with a ruling against the spirits brand, holding the parody use did not constitute actionable trademark tarnishment. The decision establishes a stricter standard for future tarnishment claims, requiring plaintiffs to demonstrate concrete, measurable harm to brand reputation rather than relying on assertions of perceived offensiveness from the third-party use. In-house counsel should audit existing trademark enforcement policies to align with the new standard, assess pending tarnishment claims for viability under the updated test, and update internal brand protection training for relevant cross-functional teams to reflect the narrowed scope of actionable tarnishment.
In-house counsel and compliance teams at CFTC-regulated derivatives firms, EU financial institutions, and agricultural derivatives end users must review new rule proposals and extended comment deadlines to avoid cross-jurisdictional regulatory noncompliance.
This August 7, 2026 update summarizes key US and EU derivatives regulatory developments from late July to early August. In the US, the CFTC published a proposed rulemaking amending regulations for affiliations among CFTC-regulated entities, with a 60-day comment period following Federal Register publication, extended comment deadlines for 24/7 energy futures and perpetual contract rules to August 26, and issued guidance on event contract self-certifications and a time-limited no-action letter for Kraken Derivatives’ dormancy procedures. In the EU, the FCA finalized UK MIFIR transaction reporting rules, the EBA released FRTB implementation no-action relief and technical clarifications, and EU supervisory authorities proposed simplified bilateral margin requirements and AI ICT risk guidance for financial firms. Affected entities should review all released materials, assess operational applicability, and prepare required comment submissions or compliance adjustments.
Importers, marketers, and procurers of foreign-produced power inverters and advanced robotics devices must adhere to new FCC rules barring new models from the US market, with conditional approval applications due by January 1, 2028.
On July 28, 2026, the FCC added foreign-produced power inverters and advanced robotics devices to its Covered List, barring new models of these products from FCC authorization for US import, marketing, or sale, based on an interagency national security determination citing supply chain and critical infrastructure cybersecurity risks. Previously authorized existing models remain eligible for FCC certification or Supplier’s Declaration of Conformity, with no retroactive restrictions. Companies seeking to bring new foreign-produced models to the US may apply for conditional approval from the Department of War and Department of Homeland Security by January 1, 2028, with submissions requiring disclosures of corporate structure, supply chain practices, and US onshoring plans. Renewable energy project developers and robotics purchasers should update procurement agreements to require vendors to secure and maintain required FCC authorizations for all covered products.
The Trump administration has announced a new 25% tariff on certain Chinese products and directed CFIUS to tighten scrutiny of Chinese investment in sensitive US technology.
Following a Section 301 investigation into China's technology transfer and intellectual property practices, the White House on March 22, 2018, directed multiple agencies to take action. The U.S. Trade Representative (USTR) will impose an additional 25% ad valorem tariff on a list of Chinese products, set to include aerospace, information and communication technology, and machinery. The USTR will also pursue a case against China's licensing practices at the World Trade Organization. This development is critical for counsel advising clients with Chinese supply chains, as the tariffs will significantly raise import costs. Furthermore, the memorandum directs the Committee on Foreign Investment in the United States (CFIUS) to address Chinese investment aimed at acquiring sensitive U.S. technologies, signaling a more challenging environment for inbound M&A. Affected importers should monitor the Federal Register for the finalized product list and prepare to substantiate country-of-origin claims for goods with multinational production histories.
New York provides a statutory fix for financial contracts governed by its law that lack effective fallback language for the cessation of LIBOR, mandating a shift to a recommended benchmark and providing a safe harbor from litigation.
New York has enacted the first state law in the U.S. to manage the transition away from the London Inter-bank Offered Rate (LIBOR). The law provides a statutory solution for legacy financial contracts governed by New York law that have inadequate or no provisions for replacing LIBOR once it is discontinued. For these "tough legacy" contracts, the law mandates the use of the benchmark replacement recommended by the Federal Reserve, the New York Fed, or the Alternative Reference Rates Committee, which is currently the Secured Overnight Financing Rate (SOFR).
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Regulators set firm 2021 and 2023 deadlines for phasing out the benchmark rate, and key industry groups have now published standardized fallback and replacement terms.
The transition from LIBOR to alternative reference rates has reached a critical phase. In March 2021, the UK’s Financial Conduct Authority formally announced the final cessation dates for all LIBOR settings, with most U.S. dollar tenors ending June 30, 2023, and others by December 31, 2021. This announcement was a key milestone, constituting an "index cessation event" under ISDA protocols and fixing the crucial credit spread adjustment between LIBOR and its successor, the Secured Overnight Financing Rate (SOFR). For counsel at major firms, these developments remove prior uncertainty and create urgency. U.S. regulators have directed banks to stop originating new USD LIBOR loans by the end of 2021. In response, standard-setting bodies like the Alternative Reference Rates Committee (ARRC) and the Loan Syndications and Trading Association (LSTA) have released updated hardwired fallback language and SOFR-based concept credit agreements. The immediate task for market participants is to amend legacy contracts and adopt the new SOFR-based standards for new transactions.
The UK's Financial Conduct Authority has announced that it will no longer compel panel banks to submit LIBOR rates after 2021, beginning a multi-year transition for trillions of dollars in financial contracts.
The UK Financial Conduct Authority (FCA) has announced that it will no longer persuade or compel banks to submit rates for the London Interbank Offered Rate (LIBOR) after the end of 2021. The decision marks the beginning of the end for the benchmark, which underpins more than $350 trillion in financial instruments globally, including derivatives, corporate loans, and securitizations. According to the FCA, the move was necessitated by a lack of active underlying transaction data to support the benchmark, which made it vulnerable to the kind of manipulation that led to prior scandals and billions in fines.
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At a recent Financial Stability Oversight Council meeting, top US financial regulators strongly endorsed SOFR while warning that banks choosing other rates must justify their appropriateness and understand their underlying weaknesses.
Senior U.S. financial regulators have issued a coordinated warning against adopting certain credit-sensitive alternatives to LIBOR, strongly reinforcing their preference for the Secured Overnight Financing Rate (SOFR). During a Financial Stability Oversight Council meeting, Treasury Secretary Janet Yellen, Fed Vice Chair Randal Quarles, and others cautioned that some proposed replacement rates may replicate the weaknesses that doomed LIBOR, particularly where the volume of derivatives could dwarf the underlying transactions.
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Cosmetics and personal care product manufacturers using DEA no longer need to comply with California Prop 65 cancer warning requirements for the ingredient, and the ruling creates a replicable legal strategy to challenge other Prop 65 warnings based on contested science.
On June 23, 2026, the U.S. District Court for the Eastern District of California entered a permanent injunction barring the California Attorney General from enforcing Proposition 65 cancer warning requirements for diethanolamine (DEA) in cosmetics and personal care products, via a stipulated judgment with the Personal Care Products Council. The ruling is the fourth recent First Amendment victory against Prop 65 warning mandates, following successful challenges to glyphosate, acrylamide, and titanium dioxide requirements. The court found the DEA warning was not purely factual, as it relied solely on an IARC 'possible carcinogen' classification with no independent human or consistent animal study support. In-house counsel for DEA-containing personal care product manufacturers can immediately cease Prop 65 warning compliance for the ingredient, and may assess whether other Prop 65 listed chemicals with similarly limited scientific backing are viable for challenge under the same compelled speech theory.
China has implemented a nationwide record-filing system for foreign investments not on a new 'Negative List,' replacing the previous, more burdensome approval-based administration.
China has fundamentally reformed its administrative system for foreign investment, shifting from a universal pre-approval requirement to a more streamlined record-filing process for many businesses. The change, which was first tested in pilot free trade zones, now applies nationwide. Under the new regime, foreign investments are categorized based on a 'Negative List.' Projects falling outside this list—which covers restricted and prohibited sectors, along with certain encouraged industries having specific equity or senior management requirements—are no longer subject to the lengthy approval process with the Ministry of Commerce. This is a significant development for foreign investors, as it reduces administrative burdens, costs, and uncertainty for a wide range of ventures. Counsel for clients investing in China should immediately assess whether current or planned projects fall on the Negative List, as those will still require traditional approvals. It is also critical to remember that this reform only affects commerce bureau approvals; consent from other government agencies may stil
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The Indian government has significantly eased foreign direct investment restrictions in sectors including defense, aviation, pharmaceuticals, and single-brand retail.
The Government of India has announced a significant wave of reforms to its foreign direct investment (FDI) policy, aiming to make the country a more attractive destination for international capital. The changes impact several key sectors, creating new opportunities for foreign investors. Under the new policy, 100% FDI is now more accessible in the defense sector, as the previous requirement for access to “state-of-the-art” technology for investments over 49% has been removed. The pharmaceutical sector will now permit up to 74% FDI through the automatic route, without prior government approval. Other major changes include allowing 100% FDI in scheduled airlines (though foreign airline ownership is capped at 49%), existing airport projects, and the trading of Indian-made food products. For single-brand retail, the government has relaxed local sourcing requirements for three years, with a possible five-year extension. These sweeping reforms are expected to stimulate economic growth and job creation, and counsel should advise clients to reassess their India investment strategies in respo
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A new bill would create a mandatory notification and review system for foreign investments on national security grounds, similar to CFIUS in the United States.
The UK government has introduced the National Security & Investment Bill, which proposes a fundamental overhaul of the country's approach to screening foreign direct investment (FDI). If passed, the bill will establish a new standalone regulatory regime, moving authority from the Competition and Markets Authority to a new Investment Security Unit within the Department for Business, Energy & Industrial Strategy (BEIS).
This represents a significant shift for investors, creating a framework more closely aligned with the Committee on Foreign Investment in the United States (CFIUS). The legislation introduces a hybrid notification system and a broad definition of "trigger events," which could include acquiring more than 15% of shares or votes, or gaining "material influence" over a company. The rules would also apply to non-UK entities that supply goods or services in the UK. This change will add a critical layer of regulatory risk and timing considerations for a wide range of corporate and M&A transactions involving UK assets, requiring dealmakers to build a new approval process into t
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The U.S. Treasury's Financial Crimes Enforcement Network published 16 new or updated FAQs clarifying compliance obligations under the Corporate Transparency Act.
The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) on April 18, 2024, updated its extensive FAQ guidance on the Corporate Transparency Act (CTA). The update includes 14 entirely new questions and two revised answers, addressing several areas of uncertainty for companies navigating the new beneficial ownership information (BOI) reporting rules that took effect this year.
Sophisticated counsel and their clients care because the CTA is a complex law with steep civil and criminal penalties for non-compliance. The new guidance provides critical clarity on topics including the reporting status of S-corporations and entities not formed by a state filing, how to identify beneficial owners when ownership is held through trusts, and how reporting obligations apply when a company's eligibility for an exemption fluctuates. The FAQs also address access to the BOI database by federal, state, and foreign government agencies. Companies and their advisors should review the new guidance to ensure their compliance approach aligns with FinCEN's latest interpretations, particularly regard
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The Delaware Court of Chancery invalidated a seller's post-closing release for lack of consideration and an indefinite indemnification obligation for violating Delaware corporate law.
In a key decision for M&A dealmakers, the Delaware Court of Chancery invalidated two common post-closing obligations imposed on a selling stockholder. The case involved a merger where the seller was required to sign a letter of transmittal containing a broad release of claims against the acquirer and an indefinite indemnification obligation. The court struck down the release because it was requested after the merger had already closed—a point at which the seller was already entitled to its consideration—meaning there was no new consideration for the release. More significantly, the court found that the indemnification provision, which survived indefinitely and could claw back the seller's merger consideration at any point, violated the Delaware General Corporation Law. The court reasoned this structure made the total merger consideration indeterminable, contravening statutory requirements for certainty. Corporate and private equity counsel should take note, as the ruling highlights critical structuring risks for acquirers seeking post-closing protection. Acquirers cannot use letters
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With a Jan. 1, 2025, deadline looming for millions of companies to file beneficial ownership reports, counsel should advise clients to file soon to avoid penalties and a potential system crash.
Millions of U.S. entities in existence and foreign entities registered to do business in the U.S. before 2024 face a January 1, 2025, deadline to file their initial Beneficial Ownership Information Reports (BOIRs) with the Treasury's Financial Crimes Enforcement Network (FinCEN). The Corporate Transparency Act (CTA) mandates these filings to disclose the identities of all beneficial owners, with failure to comply carrying potential civil and criminal penalties.
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A US federal appeals court has again applied the "effective vindication" doctrine to find an ERISA plan's arbitration provision unenforceable, increasing class-action risk for plan sponsors.
The US Court of Appeals for the Ninth Circuit has again invalidated an arbitration clause in an employee benefit plan, continuing a trend of judicial skepticism toward provisions that limit statutory remedies under the Employee Retirement Income Security Act (ERISA). Applying the "effective vindication" doctrine, the panel found the clause unenforceable because it prevented plan participants from seeking remedies that are expressly available under the federal statute, effectively denying them their substantive rights.
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Texas Gov. Greg Abbott has ordered ERCOT and the state's PUC to suspend all new data center interconnections pending a comprehensive audit of their power, water, and community impacts.
Citing an overwhelming surge in demand, Texas Governor Greg Abbott on August 3, 2026, directed state energy regulators to halt all new data center connections to the electric grid. The order requires the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT) to conduct a comprehensive audit of every data center project in the interconnection queue before any can proceed. The directive follows reports that data centers account for roughly 90 percent of 474 gigawatts in new power requests—more than five times ERCOT’s record peak demand. The indefinite pause creates profound uncertainty for developers, investors, and technology companies with projects in Texas, a major hub for the industry. The audit’s scope is extensive, covering public financial support, water consumption, ownership structure, and community impact, signaling a new era of heightened scrutiny for large-load electricity consumers. Counsel for affected projects must now navigate an undefined review process, as the governor's letter set no deadline for completion and warned that non-
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The state has temporarily halted approvals for new data center projects pending a statewide audit of the industry's impact on the power grid and other resources.
Texas has paused approvals for new data centers to conduct a statewide audit. The move stops short of an outright ban but creates significant uncertainty for pending and future projects in one of the country's most active markets for data infrastructure.
Sophisticated counsel and their clients care because Texas has been a critical growth hub for data center development, driven by its favorable business climate and energy resources. This moratorium could disrupt expansion plans for technology, AI, and cryptocurrency companies that rely on large-scale data processing. The audit's findings could lead to new, more stringent regulations on energy consumption, water usage, and project location, potentially increasing costs and creating delays for clients across the data infrastructure pipeline.
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Importers, marketers, and procurers of foreign-produced power inverters and advanced robotics devices must adhere to new FCC rules barring new models from the US market, with conditional approval applications due by January 1, 2028.
On July 28, 2026, the FCC added foreign-produced power inverters and advanced robotics devices to its Covered List, barring new models of these products from FCC authorization for US import, marketing, or sale, based on an interagency national security determination citing supply chain and critical infrastructure cybersecurity risks. Previously authorized existing models remain eligible for FCC certification or Supplier’s Declaration of Conformity, with no retroactive restrictions. Companies seeking to bring new foreign-produced models to the US may apply for conditional approval from the Department of War and Department of Homeland Security by January 1, 2028, with submissions requiring disclosures of corporate structure, supply chain practices, and US onshoring plans. Renewable energy project developers and robotics purchasers should update procurement agreements to require vendors to secure and maintain required FCC authorizations for all covered products.
The Capital Requirements Directive IV package will limit variable pay for key financial-sector staff to 100% of fixed pay, or up to 200% with shareholder approval.
The European Union has formalized its "bonus cap" for bankers with the publication of the Capital Requirements Directive IV (CRD IV). The new regime limits variable remuneration to 100% of an employee's fixed salary, though this can be increased to 200% with sufficient shareholder approval. These rules represent a significant intervention in the financial industry, directly impacting compensation structures for senior management, risk-takers, and key control-function staff across the bloc.
Major-firm clients, including all EU credit institutions, investment firms, and EU subsidiaries of global banks, must now overhaul their remuneration policies to comply. The changes will require careful review of existing employment arrangements and potentially contentious shareholder votes to allow for the higher 2:1 ratio.
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Broker-dealer member firms and their counsel must monitor these FINRA reform recommendations, as full implementation would fundamentally reshape how firms respond to enforcement inquiries, challenge information requests, and negotiate resolution terms.
On June 30, 2026, FINRA published a report from independent outside experts commissioned as part of its FINRA Forward initiative, outlining 24 recommendations to overhaul its enforcement program. Core proposed changes include adopting statute of limitations for most violations (tied to federal securities law timelines where applicable, or a general 5-year period for other violations), a formal process for firms to challenge overbroad Rule 8210 information requests before a neutral decision-maker, revised Wells notice due process rules including 30-day minimum response windows and immediate access to testimony transcripts, and updated cooperation credit guidance that eliminates the current 'extraordinary' standard for credit. While the recommendations do not immediately alter binding FINRA rules, firms with active enforcement matters can cite the report’s principles now to push back on unreasonable information requests and negotiate more favorable resolution terms, and should track implementation progress to invoke the proposed changes as they are adopted.
For the first time in 30 years, the Monetary Authority of Singapore has ordered a merchant bank, BSI Bank, to cease operations due to serious anti-money laundering breaches linked to the 1MDB scandal.
Singapore’s financial regulator, the Monetary Authority of Singapore (MAS), has withdrawn the license of BSI Bank Limited, ordering it to cease operations in the country. The regulator also imposed a S$13.3 million fine for “serious breaches of anti-money laundering requirements, poor management oversight... and gross misconduct.” Six members of the bank's senior management are facing potential prosecution. This drastic step, the first of its kind in Singapore in over 30 years, is linked to the global investigation into Malaysia's 1MDB state investment fund.
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Recent enforcement actions targeting compliance and custody-rule violations signal a heightened SEC focus on the investment adviser community.
The SEC has brought and settled administrative proceedings against six registered investment advisers (RIAs) in a late-October enforcement sweep, signaling a significant new focus. Three firms were sanctioned for compliance program deficiencies under Advisers Act Rule 206(4)-7, with violations including the failure to conduct annual reviews and making misleading statements in marketing materials and Form ADV. Three other advisers were sanctioned for violating the custody rule, which requires specific controls to protect client assets. These actions align with recent public statements from SEC officials that its Office of Compliance Inspections and Examinations (OCIE) would target the investment adviser community. The sanctions included significant fines and undertakings, such as hiring third-party compliance consultants and notifying clients of the violations. Counsel should advise RIA clients to proactively review their compliance policies and custody arrangements in anticipation of heightened regulatory scrutiny.
An SEC staff accounting bulletin requires banks to hold customer crypto on-balance-sheet, a capital-intensive treatment that is preventing them from serving as custodians for new spot crypto ETPs.
The SEC's Staff Accounting Bulletin 121 (SAB 121), issued in March 2022, requires institutions to record crypto-assets they hold for customers as both an asset and a liability on their own balance sheets. This on-balance-sheet treatment is a significant departure from the handling of traditional custodied assets, such as securities, which are kept off-balance-sheet. For regulated banks, the accounting directive inflates their balance sheets, which in turn triggers higher capital reserve requirements under banking rules.
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In-house counsel and compliance teams at CFTC-regulated derivatives firms, EU financial institutions, and agricultural derivatives end users must review new rule proposals and extended comment deadlines to avoid cross-jurisdictional regulatory noncompliance.
This August 7, 2026 update summarizes key US and EU derivatives regulatory developments from late July to early August. In the US, the CFTC published a proposed rulemaking amending regulations for affiliations among CFTC-regulated entities, with a 60-day comment period following Federal Register publication, extended comment deadlines for 24/7 energy futures and perpetual contract rules to August 26, and issued guidance on event contract self-certifications and a time-limited no-action letter for Kraken Derivatives’ dormancy procedures. In the EU, the FCA finalized UK MIFIR transaction reporting rules, the EBA released FRTB implementation no-action relief and technical clarifications, and EU supervisory authorities proposed simplified bilateral margin requirements and AI ICT risk guidance for financial firms. Affected entities should review all released materials, assess operational applicability, and prepare required comment submissions or compliance adjustments.
The Trump administration has announced a new 25% tariff on certain Chinese products and directed CFIUS to tighten scrutiny of Chinese investment in sensitive US technology.
Following a Section 301 investigation into China's technology transfer and intellectual property practices, the White House on March 22, 2018, directed multiple agencies to take action. The U.S. Trade Representative (USTR) will impose an additional 25% ad valorem tariff on a list of Chinese products, set to include aerospace, information and communication technology, and machinery. The USTR will also pursue a case against China's licensing practices at the World Trade Organization. This development is critical for counsel advising clients with Chinese supply chains, as the tariffs will significantly raise import costs. Furthermore, the memorandum directs the Committee on Foreign Investment in the United States (CFIUS) to address Chinese investment aimed at acquiring sensitive U.S. technologies, signaling a more challenging environment for inbound M&A. Affected importers should monitor the Federal Register for the finalized product list and prepare to substantiate country-of-origin claims for goods with multinational production histories.
A new decree lowers the threshold for mandatory foreign direct investment screening to 10% for acquirers from outside the EU and EEA, now including stakes in French companies listed on foreign stock exchanges.
France has broadened the scope of its foreign direct investment (FDI) screening regime by extending a key rule to French companies listed on foreign stock exchanges. A governmental decree now applies the lowered 10% voting-rights acquisition threshold to trigger a mandatory FDI review for non-EU and non-EEA investments in these companies. This measure, initially introduced during the COVID-19 pandemic and repeatedly extended, was previously focused on companies listed within Europe.
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In-house counsel for U.S. solar developers, semiconductor manufacturers, and polysilicon importers must act to mitigate cost increases and supply chain disruptions from new Section 232 tariffs and minimum import prices on polysilicon.
On August 6, 2026, the U.S. government issued a proclamation imposing Section 232 national security tariffs and minimum import prices (MIPs) on imported polysilicon, a core input for solar panels and semiconductor chips. The policy is intended to boost domestic polysilicon production but will raise input costs for downstream buyers that rely on imported supply. Affected in-house counsel should first review existing supply contracts for price adjustment or force majeure clauses, assess eligibility for tariff exclusion requests, and evaluate alternative domestic or third-country polysilicon sourcing options to reduce cost and supply disruption risks.
In-house counsel overseeing brand protection and trademark enforcement programs must revise their playbooks, as a recent adverse ruling in Jack Daniel’s long-running 'Bad Spaniels' parody case has significantly raised the legal bar for successful trademark tarnishment claims, limiting a core tool companies use to protect brand reputation from disparaging third-party uses.
The decades-long trademark dispute between Jack Daniel’s and the 'Bad Spaniels' dog toy parody concluded with a ruling against the spirits brand, holding the parody use did not constitute actionable trademark tarnishment. The decision establishes a stricter standard for future tarnishment claims, requiring plaintiffs to demonstrate concrete, measurable harm to brand reputation rather than relying on assertions of perceived offensiveness from the third-party use. In-house counsel should audit existing trademark enforcement policies to align with the new standard, assess pending tarnishment claims for viability under the updated test, and update internal brand protection training for relevant cross-functional teams to reflect the narrowed scope of actionable tarnishment.
Proposed legislation would abolish the torts of champerty and maintenance to permit third-party funding for international arbitrations, aiming to boost the city-state's competitiveness as a global dispute resolution hub.
Singapore's Ministry of Law has introduced a draft Civil Law (Amendment) Bill and accompanying regulations to formally legalize third-party funding (TPF) for international arbitration. The proposed legislation would abolish the common law torts of champerty and maintenance that have historically prohibited such financing arrangements in the jurisdiction. The reform is a strategic move to bolster Singapore’s standing as a leading international arbitration hub, bringing its legal framework in line with competing jurisdictions like England and Australia. For major corporate clients and their counsel, this development provides a crucial new tool for financing and de-risking high-value commercial disputes. It also presents new strategic considerations for law firms advising on venue selection and case management. The proposed regulations outline specific qualification criteria for funders, requiring that funding is their primary business and that they possess sufficient accessible capital. Counsel should monitor the final form of the legislation following the close of the public consultat
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A landmark ruling overturned class certification for 1.5 million female employees and significantly tightened the 'commonality' standard for all plaintiffs.
The U.S. Supreme Court has reshaped the landscape for class action litigation, reversing certification for a historic 1.5 million-member class of female Wal-Mart employees alleging gender discrimination. In its 5-4 decision in Wal-Mart Stores, Inc. v. Dukes, the Court held that the plaintiffs failed to meet the commonality requirement of Federal Rule of Civil Procedure 23(a). The majority found the plaintiffs’ theory—that Wal-Mart’s discretionary “corporate culture” led to biased pay and promotion decisions by local managers—was insufficient to prove all plaintiffs suffered the same injury. Writing for the Court, Justice Scalia stated that the decentralized, subjective decision-making was the “opposite of a uniform employment practice” that could tie the claims together. This ruling significantly raises the bar for plaintiffs, requiring more than common allegations; they must show a common contention capable of class-wide resolution. The decision provides defendants a powerful tool to defeat certification, particularly in large-scale employment disputes, and has broad implications fo
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The new law federally legalizes industrial hemp and its derivatives, including CBD, shifting primary regulatory authority to the Department of Agriculture and the states.
The Agriculture Improvement Act of 2018, known as the 2018 Farm Bill, was signed into law, fundamentally altering the legal landscape for cannabis. The bill explicitly removes hemp from the definition of marijuana under the Controlled Substances Act (CSA), thereby legalizing the plant and its derivatives at the federal level. To qualify as hemp, the plant and its products, including extracts and cannabinoids, must contain a delta-9 tetrahydrocannabinol (THC) concentration of no more than 0.3 percent on a dry weight basis.
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The agency is seeking comment on retroactively applying national-security restrictions to already-authorized unmanned aircraft systems and surveillance equipment.
The U.S. Federal Communications Commission (FCC) has initiated proceedings to retroactively prohibit the importation and marketing of certain foreign-made technology that, despite having prior authorization, is now on its "Covered List" of equipment deemed a national security risk. The proposed actions, detailed in public notices, specifically target unmanned aircraft systems (UAS) and surveillance equipment from manufacturers including DJI and Autel Robotics. This follows the FCC's addition of these product categories to the list in December 2025.
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The U.S. has announced the Joint Comprehensive Plan of Action, but OFAC has clarified that broad sanctions against Iran remain in effect pending verification of its nuclear-related commitments by the International Atomic Energy Agency.
The United States and other world powers have reached a landmark agreement with Iran, the Joint Comprehensive Plan of Action (JCPOA), to ensure its nuclear program is exclusively peaceful. This historic deal creates a potential pathway for relief from the extensive U.S. and international sanctions that have isolated Iran's economy, which could eventually open significant opportunities for clients in sectors from energy and aviation to finance and consumer goods.
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The Treasury Department's Office of Foreign Assets Control has published new regulations implementing the Global Magnitsky Act, detailing prohibitions and exemptions for dealings with persons involved in human rights abuse or corruption.
The U.S. Treasury's Office of Foreign Assets Control (OFAC) has published regulations to implement the Global Magnitsky Human Rights Accountability Act and Executive Order 13818. The rules, codified at 31 C.F.R. Part 583, formalize and detail the U.S. sanctions regime targeting foreign persons designated for involvement in serious human rights abuse or significant corruption. These individuals and entities are added to OFAC's Specially Designated Nationals (SDN) List under the identifier “[GLOMAG],” effectively blocking their property and prohibiting U.S. persons from transacting with them.
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The Supreme Court unanimously held that companies may have a duty to disclose adverse event reports even if they are not yet statistically significant.
The U.S. Supreme Court unanimously held in Matrixx Initiatives v. Siracusano that statistical significance is not a prerequisite for adverse event reports to be considered "material" in a securities fraud claim. The Court rejected the defendant's proposed bright-line rule, which would have shielded companies from liability for non-disclosure unless there was a statistically significant link between a product and negative effects. Instead, the Court reaffirmed the context-dependent standard from Basic Inc. v. Levinson, focusing on whether a reasonable investor would view the information as having "significantly altered the 'total mix' of information available." For public companies, particularly in the pharmaceutical and medical device industries, this decision means that early-stage safety signals or a small number of troubling reports can be legally material. The ruling involved Zicam, a cold remedy allegedly linked to loss of smell, which accounted for 70% of the company's sales. Counsel should advise clients that materiality is a fact-specific inquiry and that overlooking adve
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Broker-dealers, investment advisers, and issuers serving retail investors face heightened SEC scrutiny as a new dedicated working group targets offering frauds, manipulation, and fiduciary breaches.
On July 7, 2026, the SEC's Division of Enforcement launched a Retail Fraud Working Group to centralize expertise and resources for pursuing misconduct affecting individual investors. The group will focus on offering frauds, pump-and-dump schemes, market manipulation, and breaches of duties by investment advisers and broker-dealers. It will also coordinate with domestic and foreign regulators, partner with the Office of Investor Education and Advocacy, and use data analytics for proactive case generation. Leadership is provided by Deputy Director Kate Zoladz and Assistant Director Kim Frederick. For market participants, the signal is clear: marketing materials, retail-facing communications (including social media), trading surveillance, fiduciary policies, complaint handling, and front-line training are all areas ripe for SEC examination. Firms in microcap securities, retail trading platforms, private offerings to individuals, and online-distributed products should expect especially close attention as the working group staffs up and brings its first matters.
Public companies, private funds, and their auditors must act as the SEC’s new dedicated accounting fraud enforcement unit signals a heightened priority on pursuing financial reporting and auditing misconduct, raising enforcement risk for related violations.
On August 5, 2026, the SEC established the Financial Reporting and Accounting Unit within its Division of Enforcement, staffed by attorneys and specialized accounting experts to pursue misconduct related to financial reporting, accounting, and auditing. The unit supersedes the Division’s earlier announced SOX Group, aligns with SEC leadership’s stated
The SEC conformed its rules to the Dodd-Frank Act, permanently exempting non-accelerated filers from obtaining an external auditor attestation on internal controls.
The SEC has adopted rule changes to conform with the Dodd-Frank Act, which permanently exempts non-accelerated filers from Section 404(b) of the Sarbanes-Oxley Act (SOX). This relieves smaller public companies of the requirement to include in their annual reports an attestation from their external auditor on the effectiveness of internal controls over financial reporting (ICFR). The relief was enacted in Section 989G of the Dodd-Frank Act, which created a new Section 404(c) of SOX.
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A newly proposed SEC rule would create a long-sought safe harbor from broker-dealer registration for certain intermediaries who help private companies raise capital.
The U.S. Securities and Exchange Commission has proposed a new exemptive order to create a clear safe harbor for "finders" who assist private companies in raising capital from accredited investors. This proposal addresses a persistent legal gray area where intermediaries, who are not registered as broker-dealers, have faced regulatory risk for connecting issuers with potential funding sources. Historically, their involvement could give disgruntled investors a basis for rescission, jeopardizing the financing.
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New guidance suggests that certain operating-asset data center deals are not 'asset-backed securities' under the Exchange Act, potentially exempting them from key regulations.
The SEC staff has issued guidance clarifying a key regulatory question in the rapidly growing data center securitization market. Responding to an industry inquiry, the staff addressed whether securities issued by an entity that owns and operates data center facilities should be classified as “asset-backed securities” (ABS) under the Securities Exchange Act. The analysis distinguishes these operating-asset or “whole business” structures from traditional securitizations backed by a discrete pool of self-liquidating financial assets like leases or loans. The guidance suggests that where repayment depends on the active management and net operating cash flow of the underlying facilities, the securities may not meet the Exchange Act’s definition of ABS. For sponsors and issuers, this clarification is significant. It could mean that key securitization-specific requirements—including Regulation RR risk retention and various disclosure and reporting rules—do not apply, potentially streamlining execution and reducing costs. Counsel should now evaluate existing and future transaction structures
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Following the Supreme Court's Wayfair decision, California will require remote sellers with over $100,000 in sales or 200 transactions into the state to collect and remit sales tax starting April 1, 2019.
Responding to the U.S. Supreme Court's landmark decision in South Dakota v. Wayfair, the California Department of Tax and Fee Administration has announced it will require out-of-state retailers to collect and remit state sales and use tax beginning April 1, 2019. The Wayfair ruling overturned the long-standing physical-presence requirement for sales tax nexus, expanding states' authority to tax remote sales.
This policy shift has immediate and significant compliance implications for e-commerce and other businesses nationwide that sell into California, the largest consumer market in the United States. Companies without a physical presence in the state must now assess whether they meet the new economic nexus thresholds: more than $100,000 in sales or 200 separate transactions for delivery into California within the current or preceding calendar year.
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The Supreme Court's decision in South Dakota v. Wayfair overturns a half-century of precedent, exposing remote sellers to sales and use tax collection duties in states where they have no physical presence.
The U.S. Supreme Court's decision in South Dakota v. Wayfair has overturned the long-standing physical presence requirement for sales tax nexus, a standard that stood for over 50 years since the Quill Corp. v. North Dakota ruling. This historic shift means that states and local governments can now require internet, mail-order, and other remote sellers to collect and remit sales and use taxes even if the seller has no physical offices, employees, or inventory within the jurisdiction. The ruling creates substantial new compliance burdens for businesses, especially small and medium-sized enterprises, which must now navigate thousands of different tax regimes, each with its own rates, rules, and filing requirements. The decision affects sellers of physical goods, services, and digital products, fundamentally altering the tax landscape for e-commerce. Affected businesses must now urgently assess their nexus footprint on a state-by-state basis and implement systems for tax collection and remittance to mitigate exposure to audits and penalties.
The UK Finance Act 2015 has received Royal Assent, introducing a 25% “diverted profits tax” aimed at multinationals that conduct extensive business in the UK while avoiding a local taxable presence.
The UK's Finance Act 2015 received Royal Assent on March 26, 2015, enacting a new 25% diverted profits tax (DPT) aimed at changing corporate behavior. The tax is set intentionally higher than the UK's 20% corporation tax rate. Counsel for multinationals should care because the DPT creates significant new risks for two common structures: foreign companies with substantial UK business activities structured to avoid a UK permanent establishment, and UK-based entities using payments to low-tax affiliates to reduce taxable profits.
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The U.S. Supreme Court is considering whether to discard the long-standing physical-presence requirement for state sales tax collection in a case that could reshape e-commerce.
The U.S. Supreme Court heard oral arguments on April 17, 2018, in South Dakota v. Wayfair, Inc., a case that could fundamentally alter the landscape of e-commerce taxation. The court is considering whether to overturn its 1992 precedent in Quill Corp. v. North Dakota, which requires a business to have a physical presence in a state to be compelled to collect and remit its sales and use taxes. South Dakota argues the rise of internet retail has rendered the Quill standard obsolete, depriving states of significant tax revenue and disadvantaging local businesses. For companies selling online, abandoning the physical presence test would trigger complex and costly compliance obligations across thousands of state and local tax jurisdictions nationwide. During arguments, the justices weighed the principles of stare decisis against the evolution of commerce, also raising concerns about the potential burden on small businesses. A decision is expected by late June 2018, and businesses engaged in remote selling should monitor the outcome closely to prepare for a potentially seismic shift in the
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New IRS guidance confirms that for qualifying arrangements, U.S. federal income tax is generally due only on net cash exchanged, not on the imputed value of the licenses.
The IRS has issued Revenue Procedure 2007-23, creating a safe harbor for the tax treatment of certain patent cross-licensing agreements and resolving significant industry uncertainty. The guidance allows taxpayers to use a 'Net Consideration Method' for 'Qualified Patent Cross-Licensing Arrangements' (QPCLAs), meaning U.S. federal income tax generally applies only to the net cash consideration exchanged between the parties, not to the imputed value of the licenses themselves. This is a significant relief for technology, pharmaceutical, and other IP-intensive companies, as it aligns with longstanding common practice and avoids the complex and potentially costly valuation of non-cash patent exchanges. To qualify for this treatment, an arrangement must be a nonexclusive, nontransferable agreement between unrelated parties, covering only patent rights with no more than de minimis other intellectual property. Counsel should advise clients to structure new cross-licenses to meet the QPCLA criteria and review the status of existing agreements. The tax treatment of arrangements that do not q
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The Treasury Department has proposed rules for the IRA's $7,500 clean vehicle tax credit, clarifying the strict North American and FTA-partner sourcing requirements for battery components and critical minerals that automakers must now meet.
The U.S. Treasury Department has issued a notice of proposed rulemaking to clarify the complex sourcing requirements for the Section 30D new clean vehicle tax credit, as amended by the Inflation Reduction Act. The guidance is critical for automakers, battery manufacturers, and mineral suppliers, as the full $7,500 credit per vehicle is now split into two parts, each with stringent prerequisites: one for critical minerals and another for battery components.
Sophisticated counsel and clients in the automotive and energy sectors care deeply because these rules dictate which vehicles will be eligible for a credit that heavily influences consumer demand. Compliance requires a fundamental restructuring of supply chains to favor processing and manufacturing in North America or in countries with which the U.S. has a free trade agreement. The proposed regulations outline multi-step procedures for calculating the value percentages for both minerals and components. Counsel should analyze these proposed tests to advise on supply-chain strategy and consider submitting comments on the rulemaking.
The Bribery Act 2010, called the "toughest enforcement standard in the world," creates a new corporate offense of failing to prevent bribery and has significant extraterritorial implications.
The United Kingdom has enacted the Bribery Act 2010, a sweeping anti-corruption law widely considered to be stricter than the U.S. Foreign Corrupt Practices Act. The new legislation significantly expands the scope of bribery offenses and has a broad extraterritorial reach, affecting non-UK companies that carry on a business or part of a business in the UK. Sophisticated clients and counsel must take note of several key changes. The Act creates a new strict-liability corporate offense of failing to prevent bribery by an associated person, with the only defense being the implementation of 'adequate procedures.' Penalties are severe, including unlimited fines for companies and up to 10 years imprisonment for individuals. Unlike the FCPA, the Act criminalizes bribery in the private sector (commercial bribery) in addition to public-official bribery, and it explicitly prohibits small 'facilitation payments.' Given the rising trend of cross-border enforcement, multinational corporations should urgently review their global anti-corruption programs to ensure they meet this new, higher standar
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A New York appellate court has affirmed the "unequivocal right" of former directors and officers to access attorney-client privileged documents created during their tenure when needed to defend themselves in a subsequent action.
New York's Appellate Division, First Department, ruled in People v. Greenberg that former corporate directors and officers have an "unequivocal right" to access attorney-client privileged documents created during their service when their conduct is later questioned. The case involved former AIG executives who sought legal memoranda from the company to support their defense against government allegations, arguing they had relied in good faith on advice of counsel.
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The US Securities and Exchange Commission announced a new specialized unit within its Division of Enforcement dedicated to pursuing misconduct in accounting, financial reporting, and auditing.
The US Securities and Exchange Commission has established a new specialty group within its Division of Enforcement, the Financial Reporting and Accounting Unit, to concentrate on fraud and misconduct in corporate accounting and auditing. Announced on August 5, 2026, the unit's creation signals a heightened focus on the integrity of financial reporting by public companies. For corporate counsel and their clients, this development suggests the agency is dedicating more specialized resources and expertise to uncover and prosecute complex accounting schemes. This may lead to an uptick in investigations and enforcement actions against companies, their executives, and their auditors. The move underscores the critical importance of robust internal controls over financial reporting. BigLaw practitioners should advise clients to monitor the first wave of cases from this unit to gauge its enforcement priorities and to ensure their own compliance and disclosure protocols are rigorous.
Recent FBI arrests of NBA figures, including a head coach and a player, for illegal gambling activities highlight the effectiveness of monitoring and reporting protocols in the regulated US sports-betting market.
The FBI has arrested several NBA figures, including Portland Trailblazers head coach Chauncey Billups and Miami Heat guard Terry Rozier, on charges related to a sports gambling scheme. The investigation reportedly centers on suspicious wagering activity from March 2023, when sportsbooks and independent monitor U.S. Integrity flagged an unusual volume of bets on Rozier underperforming just before he left a game with an injury. The alert, made under state-mandated reporting requirements, demonstrates the intended function of the legal sports-betting framework. This high-profile enforcement action is a critical development for clients in the gaming industry, as it validates the integrity-monitoring systems they are required to maintain. For sports leagues and teams, it underscores the persistent risks of gambling-related scandals and the FBI's focus on the expanding legal wagering market. Counsel should monitor the indictments and any resulting policy changes from leagues or regulators, particularly concerning the heightened security risks associated with individual player proposition b
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The Securities and Exchange Commission has formed a new Retail Fraud Working Group within its Enforcement Division to enhance its focus on protecting individual investors.
The U.S. Securities and Exchange Commission's Division of Enforcement has announced the formation of a new Retail Fraud Working Group, signaling a heightened commitment to protecting individual investors. This initiative underscores the agency's previously stated priority of policing misconduct in the retail market and suggests a more coordinated and strategic approach to enforcement in this area.
For sophisticated counsel and their clients, particularly broker-dealers, investment advisers, and any public companies interacting with retail investors, this development is significant. The creation of a dedicated working group indicates that the SEC is likely to devote more resources to investigating fraud affecting this group, potentially leading to an increase in examinations, inquiries, and enforcement actions. Firms should anticipate greater scrutiny of their marketing materials, sales practices, and disclosures aimed at retail participants.
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Grade 3 — worth a glance, not the full analysis.
- IL Court Lets Chicago Tax Car Rentals Beyond Its Borders
An Illinois appellate court upheld a Chicago ordinance requiring rental companies outside the city to collect its tax on rentals to Chicago residents based on a presumption of use.
- FinCEN Warns of Corporate Transparency Act Scams
The Treasury's Financial Crimes Enforcement Network warns of fraudulent attempts to solicit sensitive information and payments from entities subject to the Corporate Transparency Act.
- Illinois Wage Payment Act Amendments Boost Penalties, IDOL Power
Amendments to the Illinois Wage Payment and Collection Act eliminate de novo court review of agency wage orders and add significant daily penalties for non-compliance.
- US Congress advances FDA bills on generics and biosimilars
House and Senate committees have advanced multiple bipartisan bills to streamline the approval process for generic drugs, biosimilars, and nonprescription products ahead of the August recess.
- Fifth Circuit Vacates SEC Share Repurchase Disclosure Rules
Public companies are no longer required to comply with the SEC's 2023 stock repurchase disclosure rules after the Fifth Circuit found the agency acted arbitrarily and capriciously in adopting them.
- FDA Seeks Grant Bids for Animal Drug Innovation
The FDA's Center for Veterinary Medicine is soliciting applications through June 12, 2026, for its Animal and Veterinary Innovation Centers program, prioritizing research in aquaculture and minor ruminant species.
- German regulator calls for EU review of US Safe Harbor data transfers
Schleswig-Holstein's data protection chief Thilo Weichert urged European review of the FTC's Safe Harbor program, citing limited enforcement despite thousands of complaints.
- AI notetaker lawsuit Chamberlain v. Granola raises HR questions
A new lawsuit Chamberlain v. Granola addressing AI transcription and recording in the workplace demands HR teams' attention as the legal landscape evolves around workplace AI tools.
- Illinois Law Creates Three Tax Amnesty Programs
A new Illinois law creates amnesty programs for most state taxes, remote-seller sales taxes, and franchise taxes, offering a waiver of penalties and interest for taxpayers who pay during specified windows in 2025 and 2026.
- Third Circuit Rejects CEO Privilege Claim Over Company Counsel
A federal appeals court found a former CEO failed to establish an individual attorney-client relationship with corporate counsel, permitting the lawyers to testify against him after the company waived its privilege.
- NAIC Adopts Framework to Regulate XXX/AXXX Transactions
The National Association of Insurance Commissioners has adopted a new framework to guide future regulation of life insurers' use of captive reinsurers for financing certain policy reserves.
- IRS Places Micro-Captives on 2015 Dirty Dozen Tax Scam List
The IRS has identified micro-captive insurance structures as an abusive tax shelter, warning that promoters are selling poorly drafted policies to entities seeking excessive deductions.
- UK and New Zealand Expand Russia Sanctions Lists
The UK designated several new individuals, entities, and vessels and amended a general license, while New Zealand sanctioned nine entities and 24 individuals under their respective Russia sanctions programs.
- UK Bribery Act Poses Compliance Risks for US Private Equity
Private equity investors in US companies may face liability under the UK Bribery Act as "associated persons" when it takes effect July 1, 2011.
- SBA Allows VC Funds Majority Ownership of SBIR Companies
The SBA's amended SBIR and STTR rules now permit venture capital funds, hedge funds and private equity firms to majority-own participating companies, removing prior citizenship ownership requirements.
- OFAC sanctions Syrian petroleum support network
OFAC designated additional individuals and entities providing specialty petroleum products to Syria and facilitating deceptive transactions for the Syrian government under E.O. 13582 and E.O. 13608.
- Washington Expands National Security Scrutiny of Life Sciences
US government agencies are intensifying their focus on the biotechnology and life sciences industries, citing national security concerns that impact investment, M&A, and international collaboration.
- CFTC Targets Former Congressman for Event Contract Manipulation
The Commodity Futures Trading Commission settled charges with a former congressman for allegedly trading on an event contract where he had the power to influence the outcome.
- CBP Requires Purchase Order Documentation for Crimea Imports Under OFAC General License
CBP issued notice requiring filers to provide purchase orders showing when orders went into effect for Crimea shipments, with documentation required through February 1, 2015 expiration of OFAC General License No. 5.
- UK Bribery Act takes effect July 1 2011
The UK Bribery Act becomes law on July 1, 2011, introducing corporate criminal liability for failure to prevent bribery with penalties up to 10 years imprisonment.
- 2009 shareholder bill would expand proxy access and say-on-pay
Sen. Schumer's Shareholder Bill of Rights Act and competing SEC proposal would give public company shareholders advisory votes on executive compensation and proxy access for director nominations.
- CBP Limits Post-Importation FTA Preference Claims to Statutory Methods
CBP guidance narrows acceptable methods for claiming preferential tariff treatment under FTAs where entries liquidated "as entered," restricting importers to statutory mechanisms.
- First Circuit Rules PE Funds Can Face ERISA Withdrawal Liability
The First Circuit held that a private equity fund can constitute a "trade or business" under ERISA, exposing funds to joint and several liability for portfolio companies' multiemployer pension withdrawal obligations.
- Ontario Closes Workers' Comp Fund for Pre-Existing Conditions
Ontario's Workplace Safety and Insurance Board has discontinued its Second Injury and Enhancement Fund, a key cost-mitigation tool for employers managing claims involving workers' pre-existing injuries.
- GA Court: No SOL on Successor Tax Liability in Asset Sales
A Georgia tribunal held an asset buyer liable for a seller's unpaid taxes because the buyer failed to file a required bulk sales notice, finding the standard three-year statute of limitations on assessments does not apply in such cases.
- Brazil carbon market MRV timeline draft ordinance enters consultation
Brazil's Extraordinary Secretariat for the Carbon Market released a draft ordinance for public consultation on timelines for MRV obligations under the SBCE emissions trading system.
- Report Recommends 24 Changes to FINRA Enforcement Program
An external review of the Financial Industry Regulatory Authority's enforcement program has resulted in 24 recommendations for potential improvements.
- San Francisco Eases Paid Parental Leave Eligibility
A new city ordinance reduces the minimum employment period required for workers to receive supplemental compensation for parental leave.
- NY Algorithmic Pricing Disclosure Act Now in Effect
Businesses using algorithms with personal data to set prices for New York consumers must now disclose that the price was set using their personal data, or face enforcement by the state Attorney General.
- NAIC Advances Principle-Based Reserving, Revises SPV Paper
US insurance regulators have formed a new task force to implement principle-based reserving and have softened their tone on insurers' use of special purpose vehicles in a revised white paper.
- CTA BOI reporting deadline extended to March 21
FinCEN has reinstated Corporate Transparency Act beneficial ownership reporting requirements with a new March 21, 2025 deadline, following court action in the Smith case that lifted an earlier injunction.
- A Practitioner's Guide to M&A Earn-Outs
A primer on structuring earn-out mechanisms in M&A agreements to bridge valuation gaps while minimizing the significant risk of post-closing disputes.
- Corporate Transparency Act: Beneficial Ownership Reporting Rules Take Effect
The Corporate Transparency Act requires millions of US entities to file beneficial ownership information with FinCEN by January 1, 2025, with penalties up to $10,000 and two years imprisonment for willful violations.
- Court Blocks Prop 65 Cancer Warning for DEA in Cosmetics
A federal court has permanently enjoined California from requiring Proposition 65 cancer warnings for diethanolamine in cosmetics, citing First Amendment concerns over disputed scientific evidence.
- Guide: Portfolio Company Funding via Parent Subscription Line
This guide explains the 'qualified borrower' structure, a mechanism for a portfolio company to borrow directly against its parent fund's subscription line, secured by LP capital commitments.
- Neurodiversity tribunal rise signals employer compliance risk
UK employment tribunals see surge in ADHD and autism discrimination claims as employers struggle with reasonable adjustment obligations.
- SEC Grants 45-Day Filing Extension, Issues COVID-19 Disclosure Guidance
The SEC granted public companies a 45-day extension to file disclosure reports due March 1-July 1, 2020, extended investment fund relief, and published Disclosure Guidance Topic No. 9 on COVID-19 disclosures.
- FTC/DOJ Report on Antitrust and IP Licensing Released
The FTC and DOJ issued a 220-page joint report reaffirming 1995 Antitrust Guidelines for IP licensing and addressing unilateral refusals to license patents and standard-setting organization activities under rule of reason analysis.
- India-Mauritius-Singapore Tax Treaty Changes Take Effect April 2017
India will tax capital gains on shares acquired after April 1, 2017 by Mauritius investors under amended DTAA, with Singapore treaty benefits also set to lapse.
- SEC excludes primary residence equity from accredited investor net worth
The SEC's Dodd-Frank implementing rules bar counting home equity toward the $1 million net worth threshold for accredited investors, with a 60-day look-back to prevent debt inflation.
- IAIS Launches First-Ever Global Insurance Capital Standard
The International Association of Insurance Supervisors commits to develop a risk-based global capital standard for insurers, with implementation targeted for 2019 after a two-year testing period.
- EU Confirms Get-Tough Cookie Consent Stance
The EU's Article 29 Working Party confirmed a strict approach to cookie consent requirements, indicating browser settings alone won't suffice for valid consent under EU law.
- CCPA privacy law: key coverage triggers and consumer rights
Duane Morris alert revisits California's 2018 Consumer Privacy Act, outlining $25M/50K-consumer coverage thresholds, opt-out and access rights, private right of action, and the GDPR-style compliance workload ahead of its 2020 effective date
- SEC Approves FINRA Rule on Conflicts in Fairness Opinions
FINRA members issuing fairness opinions must now disclose contingent compensation, material relationships, and whether a fairness committee approved the opinion.
- New AI Notetaker Lawsuit Raises Workplace HR Compliance Questions
In-house HR and employment counsel must track the Chamberlain v. Granola AI notetaker litigation to mitigate emerging compliance risks for AI-assisted HR processes.