Thursday, December 18, 2014

ANALYSIS: U.S. and European Laws Set to Clash–Again: New U.S. Tax Law Requires Foreign Banks to Share Unprecedented Details About Customers Overseas

For years, multi-national companies have grappled with the legal concerns Sarbanes-Oxley Act whistleblower hotlines raised across Europe. More recently, the European Parliament has criticized the collection and sharing of passenger name records with the United States. Now, new federal tax reporting requirements may re-ignite irreconcilable conflicts between U.S. and European law.

Beginning in 2013, the Foreign Account Tax Compliance Act (“FATCA”), 1 will require “foreign financial institutions” to share unprecedented amounts of customer information with U.S. tax authorities. This law attempts to identify U.S. taxpayers with financial accounts offshore, and…

ANALYSIS: U.S. FTC’S Draft Privacy Framework: Getting a Little Closer to the EU Data Directives

On Dec. 1, the Federal Trade Commission issued its long awaited report in which it outlines a Proposed Framework for businesses and policy makers for the protection of personal data. The Proposed Framework focuses on the online and offline collection, maintenance, sharing, or use by commercial entities of consumer personally identifiable information, which is defined as data that can be reasonably linked to an individual, computer or device.

The proposed Framework focuses on three areas: (a) implementation of…

ANALYSIS: New U.S. SEC Enforcement Unit Focuses on Funds and Advisers

For decades, the Securities and Exchange Commission’s Enforcement Division allocated few of its limited resources to the world of funds and advisers. The ’40 Act was left to the regulatory lawyers while, apart from the combined state-federal campaign against market timing and late trading a few years ago, the enforcement lawyers directed their investigations and litigation elsewhere.

This largely hands-off approach changed dramatically when the SEC’s new Enforcement Director Robert Khuzami announced that his restructuring efforts would include the creation of a…

Social Media Pose Risks, Liabilities for Organizations, U.S. Lawyers Say

In late October, Microsoft Corp. (MSFT) became one of a growing group of companies to release its corporate earnings exclusively on the Internet. Joining others such as Google Inc., (GOOG) the company ceased announcing its financial performance numbers in press releases distributed through business wires, the traditional method for disseminating financial information in the United States.

Just three weeks earlier, a Securities and Exchange Commission official cautioned that companies should be careful about using Twitter to communicate information to…

Japan Ponders Revamping Rules on Short Sales, Ending Uptick Rules

TOKYO—Tokyo Stock Exchange Inc. and the Financial Services Agency are moving to overhaul their short-selling regulations, TSE and FSA officials said Nov. 29.

A TSE official confirmed that TSE president Atsushi Saito said at a Nov. 24 news conference that the exchange is considering new regulations in response to alleged pricing manipulation of TSE-listed issues before…