A board of directors of a Delaware company may delegate its authority to grant equity awards if certain requirements enumerated in the Delaware General Corporation Law (DGCL) are met. Effective August 1, 2023, updates were made to these DGCL requirements.

Under §§ 157(c) and 152(b) of the DGCL, a board must establish the delegation through…

Yesterday, the Financial Crimes Enforcement Network (FinCEN) published a Small Entity Compliance Guide and updated its list of Frequently Asked Questions (FAQs) to assist entities in determining what steps will be required to comply with the beneficial ownership reporting requirements of the Corporate Transparency Act. The newly published guide includes various flow charts, tables, and hypothetical scenarios that are meant to assist members of the small business community with the analyses all companies must undertake in order to comply with the act, including determining whether a given company is or is not a “reporting company,” and determining each reporting company’s beneficial owners. FinCEN also published new FAQs and revised prior FAQs regarding the act and related reporting mechanics.

Editor’s Note: As the summer months come to an end, there has been no shortage of privacy news and updates. Oregon signed both a comprehensive privacy law and data broker law, and the SEC adopted new rules regarding the disclosure of cybersecurity incidents. Online tracking technologies continue to be a source of both regulatory concern and litigation, with the FTC and HHS jointly sending a letter to hospitals about online tracking and numerous companies grappling with wiretapping claims. Internationally, India finally passed a comprehensive privacy law, and several data protection authorities issued a joint statement on data scraping.

On September 8, the Financial Crimes Enforcement Network of the U.S. Department of Treasury (FinCEN) issued an alert warning financial institutions to be vigilant against a prominent virtual currency investment scam called “pig butchering.” U.S. law enforcement currently estimates victims in the United States have lost billions of dollars to these types of scams.

September 12-14, 2023

Keith Barnett, Jason Cover, James Kim, Kim Phan, Jean Smith-Gonnell, James Stevens, Misha Tseytlin, Rich Zack, Ketan Bhirud, Carlin McCrory, and Caleb Rosenberg will be speaking on a variety of topics during the TPPPA 2023 Solving the Payments Puzzle Conference, which will be held September 12 – 14, 2023 in Washington, DC.

What are the most significant judicial decisions, regulatory changes, and government actions affecting the financial services industry, and how might they impact your business? The following overview provides summaries of our most recent posts, which include case summaries, key takeaways, and practical insights.

On August 29, at a Board Meeting for the Federal Deposit Insurance Corporation (FDIC), Comptroller of the Currency Michael J. Hsu issued a statement supporting the insured depository institution (IDI) Resolution Plan Rule, which would require covered banks to develop and submit detailed plans demonstrating how they could be resolved in an orderly fashion in the event of receivership. Describing the impetus for this rule, Comptroller Hsu stated, “as the large bank failures of this spring have shown, banks and regulators cannot afford to be complacent when it comes to resolution.”

On August 29, the Board of Governors of the Federal Reserve System (Federal Reserve), Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (collectively, the agencies) issued a notice of proposed rulemaking with request for public comment on a proposal that would require banks with total assets of $100 billion or more to maintain a layer of long-term debt. The stated objective of the proposed rule is to “improve the resolvability of these banking organizations in case of failure, reduce costs to the Deposit Insurance Fund, and mitigate financial stability and contagion risks by reducing the risk of loss to uninsured depositors.” This proposal follows an advance notice of proposed rulemaking issued in October 2022 by the Federal Reserve and the FDIC that looked at several possible changes, including a long-term debt requirement to promote more orderly resolutions for large banks.