As dealmaking surges in most parts of the world, investors and companies are jockeying for new market positions. The dramatically different landscape of how people work, where they travel, and what they buy in a global economy still recovering from a major public health crisis has brought both opportunity and challenge. Assets for individual and company consumers may be tough to come by as international supply chains and trade restrictions remain in flux. Morgan Lewis lawyers from around the globe address these issues by offering insight into merger and acquisition trends, international trade and sanctions, and the global supply network.
The Cyberspace Administration of China released for public consultation its long-awaited template for the cross-border data transfer agreement on June 30, 2022, under the draft Provisions on the Prescribed Agreement on Cross-border Data Transfer. The consultation period ends July 29, 2022.
Russian Decree No. 430 was signed on July 5, establishing a basic framework for the replacement of Eurobonds with Russian bonds. The Decree also confirms that debts owed to Russian participants of international syndicates of banks must be repaid directly—not through facility agents from “unfriendly states”—and in rubles at the lender’s option, but at the same time substantially relaxes the repatriation rule with respect to exempt contracts.
Puerto Rico Governor Pedro Pierluisi signed Act No. 41-2022 on June 20, 2022, amending and repealing certain sections of the Labor Transformation and Flexibility Act of 2017, also known as the 2017 Labor Reform. The act aims to restore and broaden labor rights for workers in the private sphere and to have the Legislative Assembly inquire into prevailing work conditions and propose new protections for the working class.
The UK’s national security and investment regime came into effect on 4 January 2022. On 16 June, the UK government published its first report on the operation of the regime for the period between 4 January and 31 March (Report). The Report shows that during the initial three-month period, the UK government received 222 notifications, out of which it only called in for investigation 17 transactions, clearing three (with the remaining 14 pending at the end of the reporting period).
Leading up to the June 21 effective date, US Customs and Border Protection issued operational guidance and a strategy document to assist importers with Uyghur Forced Labor Prevention Act compliance and to define its enforcement strategy. While the enforcement tools are consistent with existing forced labor mechanisms, the act’s evidentiary standard is expected to be significantly higher. Preparing for compliance presents many challenges, but there are steps importers can take now to mitigate delays.
The Securities and Futures Commission recently issued a consultation paper on proposed enforcement-related amendments to the Securities and Futures Ordinance, the principal legislation that regulates the securities and futures industry in Hong Kong. The proposal is a significant step toward aligning the regulatory regime with other major common law jurisdictions and a legislative development not seen in Hong Kong since the law was enacted and came into force in 2003.
A new statement from the Russian Ministry of Finance requires Russian borrowers to repay debt owed to Russian lenders participating in international syndicates directly (bypassing mechanisms established by the relevant loan agreements). This requirement may potentially result in large-scale defaults of Russian borrowers.
The Dubai Financial Services Authority (DFSA) has implemented a new regime for credit funds, which comes into force on June 1, 2022. The new regulation primarily impacts the managers of credit funds domiciled in the DIFC, but there are some implications for non-DIFC credit funds. The new regulation results in heightened regulation of DIFC credit funds and their managers (as compared to other DIFC funds and their managers) and, in practice, will likely operate as a new licensing category, with higher fees and additional compliance obligations.
Partner William Yonge spoke to Hedge Fund Law Report about the UK Financial Conduct Authority’s (FCA’s) recently issued portfolio letter to firms in the custody and funds services portfolio, which includes third-party custodians, fund depositaries, third-party fund administrators, and transfer agents.
In the final installment of a series by Hedge Fund Law Report on sanctions compliance, partner Giovanna Cinelli discusses the elements of effective sanctions compliance, highlighting the need for due diligence, among other insights and recommendations.
Partner Amanjit Fagura spoke to Salaam Gateway about Sharia-compliant environmental, social, and governance (ESG) investments in the Islamic finance industry.
Partners Frances Murphy and Joanna Christoforou and associate Michael Zymler authored an article for Global Competition Review about cartel enforcement action in the United Kingdom from March 2021 to March 2022.
Partner Robin Nunn touches on the Community Reinvestment Act (CRA) and offers takeaways for lawyers representing banks and other financial institutions in an article for Bloomberg Law.
Partner Merryn Craske spoke to IFLR about simple, transparent, and standardised (STS) securitization. “From the start, the authorities were strongly opposed to investors investing in instruments that they didn’t understand,” she said. “The idea was to introduce more reporting and more investor due diligence.”
Welcome to the 112th edition of our outside publication on developments in national competition laws released in Wirtschaft und Wettbewerb (WuW), a periodical for German and European competition law professionals published by Handelsblatt Fachmedien.
Partners Alishia Sullivan, Carol Tsuchida, Wai Ming Yap, and Alice Haung wrote an article for Thomson Reuters Regulatory Intelligence about digital asset regulations and trends for private funds in Asia and the Middle East.