The intersection of law and politics has always had a significant impact on regulations for multinational companies. From data privacy laws to international trade to global enforcement trends, the interplay of these regional laws and regulators is a key priority for many businesses. Enforcement trends from the US Department of Justice, Securities and Exchange Commission, and Food and Drug Administration, as well as state attorneys general, international regulatory and antitrust bodies, and others, will serve as a key roadmap for companies navigating uncertain waters. These actions will likely increase as COVID-19 restrictions slowly recede.
The Basel Committee on Banking Supervision (Basel Committee), a committee of global central bankers and regulators, issued a Consultative Document on June 10 on the prudential treatment of cryptoasset exposures for international banks (the Proposal). The Basel Committee has asked for comments by September 10, 2021.
In response to arguments made by the US government in an appeal pending before the US Supreme Court, members of Congress requested an investigation into the adequacy of due process afforded to Patent Trial and Appeal Board litigants, in particular the amount of supervision and arbitrary control exercised by the director of the US Patent and Trademark Office over PTAB decisionmaking.
The new executive order continues the policy of prohibiting US persons’ transactions in the publicly traded securities of select Chinese companies, but expands the scope to include both Chinese companies that operate or have operated in the defense and related materiel sector and those in the surveillance technology sector of the economy of the People's Republic of China.
On 20 May 2021, the UK government published a consultation paper in which it set out its proposals to revise the current regime for insolvent insurers (excluding Lloyd’s underwriters). The proposals seek to clarify and enhance aspects of the existing “write-down” power of the court under Section 377 of the Financial Services and Markets Act 2000.
The UK National Security and Investment Act 2021 (NSI Act) received royal assent on 29 April 2021. Expected to come into force in late 2021, the NSI Act will introduce a standalone UK foreign direct investment and national security screening regime, replacing the current regime that links national security screening with UK merger control.
Draft law “On Activities of Foreign Companies in the Internet in the Territory of the Russian Federation,” introduced to the State Duma, a lower chamber of the Russian parliament, on May 21, 2021, aims to extend Russian jurisdiction to certain non-Russian internet businesses by requiring them to open local offices in Russia and to comply with orders of Roskomnadzor, a Russian internet and data privacy regulator. Failure to do so may result in restrictive measures limiting ability to work with Russian users and businesses.
To enhance its food traceability objective through the use of technology that strengthens the food safety system, the US Food and Drug Administration (FDA) unveiled, on May 19, its latest initiative through which it hopes to obtain valuable information and tangible solutions from various stakeholders.
Since January, FERC-regulated market participants and practitioners alike have anticipated how FERC may approach its enforcement mission under the stewardship of Chairman Richard Glick following his appointment as chair by President Biden. Although most market participants and practitioners have expected FERC to take an aggressive approach in investigating and penalizing instances of misconduct, FERC confirmed those expectations in its May 20 open meeting.
Partner Mike Pierides and associate Charlotte Roxon authored an article for Tech Radar about the UK’s plans for a national AI strategy.
Partner Matt Miner was quoted in a Global Investigations Review article about the increase in Covid-19 relief related fraud claims being dealt with by the US Department of Justice (DOJ). Matt told GIR that despite the increased workload, he doesn’t expect CARES Act enforcement to have an effect on resources broadly at DOJ’s Fraud Section.
Morgan Lewis partner Giovanna Cinelli, head of the firm’s international trade and national security practice, spoke to the Washington Lawyer about the emerging trends in national security and data protection legislation.
Partner John McGahren and associate Jamie Huffman authored an article for the ABA Journal regarding potential regulatory and liability risks that new sanitizer producers may face due to the spike in demand for antibacterial products.
Partner Iain Wright spoke to the Financial Times to discuss the UK Financial Conduct Authority’s consultation proposing a new regime for special purpose acquisition companies (SPACs).
Morgan Lewis partner Omar Shah was quoted by Law Society Gazette in an article about the role of the Competition Appeal Tribunal (CAT) post-Brexit.
Partners Daniel Tehrani and Robin Nunn and associate Bryan Woll authored a Law360 Expert Analysis about a new antifraud initiative of the US Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
Partner Reece Hirsch spoke with MedCity News about the US Department of Health and Human Services’ information-blocking rules. In the article, Reece discussed ambiguities around the definition of information blocking.