US Federal Court orders Microsoft to produce e-mail content stored outside the United States

In a decision that may have implications for the way US technology companies, and in particular data storage or “cloud” providers, do business with customers, who may include financial institutions, outside the United States, a federal district judge in New York has affirmed a magistrate judge’s decision that ordered Microsoft Corporation to produce, in response to a search warrant issued at the behest of US authorities, the contents of one of its customer’s e-mail accounts stored on a Microsoft server in Ireland.  Continue reading

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Filed under Americas, US

LME held immune from anti-trust suit under US Foreign Sovereign Immunities Act

In re: Aluminum Warehousing Antitrust Litigation, U.S. District Court, Southern District of New York, No. 13-md-02481, Judge Katherine Forrest has granted a motion to dismiss filed by the London Metal Exchange Ltd (LME) in antitrust litigation which alleged a conspiracy between the LME, owners and operators of metal storage warehouses, and metals traders, to drive up aluminium prices by restricting supply.  Continue reading

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Filed under UK, Uncategorized, US

SFC says no legislative changes needed to make Sponsors liable for prospectuses

Last Friday, the SFC issued supplemental consultation conclusions covering prospectus liability for sponsors.  The SFC has concluded that sponsors already have potential civil and criminal liability for prospectuses under the current legislation and therefore no legislative amendments are required.  The supplemental consultation conclusions published last Friday send a message to the market that the SFC considers sponsors are already caught by the existing regime and it will consider bringing criminal proceedings against sponsors in appropriate circumstances where material untrue statements are made in a prospectus.   Continue reading

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Filed under Asia, Hong Kong

Banking Litigation update

We have published our latest Banking Litigation Update, summarising some of the more important cases and developments affecting UK financial institutions over the first half of 2014, including: Continue reading

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Filed under Americas, Australia, Banking, UK, US

US Federal Appeals Court holds that the Dodd-Frank Act’s whistleblower anti-retaliation provisions do not apply extraterritorially

The US Court of Appeals for the Second Circuit in Liu Meng-Lin v. Siemens AG, 13-4385-cv (2d Cir. N.Y. Aug. 14, 2014) upheld a lower-court’s decision to grant Defendant Siemens’ motion to dismiss a claim alleging wrongful termination brought by Taiwanese resident, Liu Meng-Lin, a former employee of Siemens China.  The Second Circuit held that the Dodd-Frank whistleblower anti-retaliation provision relied upon by Mr Liu did not apply extraterritorially, to a non-US citizen employed abroad by a foreign company, where all events allegedly giving rise to the liability occurred outside the United States.  To read the briefing prepared by our team in New York, click here.

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Filed under Americas, US

Sanctions update: recent developments in UK, EU and US

  • The UK’s Export Control Organisation (ECO) has published FAQs on the EU’s trade sanctions on Russia which restates some of the information already contained in EU Regulation 833/2014 
  • The EU Foreign Affairs Council has given its conclusions on Ukraine following a meeting in Brussels on 15 August 2014 
  • In the US, OFAC has issued revised guidance and FAQs in relating to the “50% rule” regarding entities owned by designated persons

To read more about these developments, please click here.

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Filed under Americas, EU, Russia, UK, Ukraine, US

UK: FCA publishes feedback on its thematic review of the use of dealing commission

Investment managers will be aware that the FCA has been holding discussions with the industry and conducting a thematic supervisory review (between November 2013 and February 2014) as to the controls that investment managers have over the use of dealing commissions for the purchase of research.  The Financial Conduct Authority (FCA)’s Discussion Paper (DP14/3) provides feedback on that review and policy debate on the market for research.   Continue reading

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Filed under Asset management, FCA, Investment Funds, UK

Australia: Practical steps to maintain privilege when communicating with non-legal advisers

The recent Federal Court decision in Asahi Holdings (Australia) Pty Ltd v Pacific Equity Partners Pty Limited (No 4) [2014] FCA 796 highlights the limited extent to which privilege subsists in emails and draft transaction documents created by or disseminated to non-legal advisers during commercial transactions.  Our briefing sets out practical steps that non-legal advisers and clients can take to minimise the likelihood of sensitive information having to be disclosed.

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Filed under Australia, Commercial Litigation, Investment banking

Major new international accounting standard on financial instruments

The IASB has published the complete version of IFRS 9 ‘Financial Instruments’, which replaces the current standard IAS 39.  This final version includes requirements on the classification and measurement of financial assets and liabilities and an expected credit losses model that replaces the incurred loss impairment model that is used today.  The new standard is effective for accounting periods beginning on or after 1 January 2018, subject to EU endorsement, with early application permitted.   For more on the new standard, click here.

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Filed under EU, International

US: Herbert Smith Freehills obtains important decision for non-US banks which maintain a branch office in New York

In a case of first impression in the New York state courts – Gliklad v. Bank Hapoalim, B.M., No. 155195/2014 (N.Y. Sup. Ct. N.Y. Cnty. Aug. 11, 2014) – the New York Supreme Court has held that maintaining a branch office in New York does not, in itself, subject a non-U.S. bank to general personal jurisdiction in New York.  This decision is important to international financial institutions for several reasons, as explained by Scott Balber, Jonathan Cross and Christopher Leahy from our New York office in this briefing.

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Filed under Americas, Asia, Australia, Banking, Europe, France, Germany, Hong Kong, International, Spain