On 14 April 2022, SIFMA issued letter supporting accelerating settlement cycle to T+1. Benefits: risk reduction, capital optimization, improve post-trade processing efficiency. Recommended compliance date of 3 September 2024; did not support written agreement requirements, would disproportionately impact B/Ds; supported same day affirmation. Advocated to retain fallback exception for T+2 settlement in unforeseen circumstance. Requested…
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U.K. – Gov’t National Security Law in Force
On 11 April 2022, UK GVT updated its guidance collection to help firms, investors understand obligations under the new rules, including how to assess if UK GVT must be notified of an acquisition, what to expect from NSI notification, assessment process. Added guidance on how to comply with the National security and investment act 2021…
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Australia – Gov’t Amended Foreign Acquisitions and Takeovers Regulation
On 11 April 2022, AST GVT registered the 14th compilation of foreign acquisitions and takeovers regulation 2015, showing the law as amended and in force on 1 April 2022. Compilation issued to incorporate changes made by the foreign acquisitions and takeovers amendment regulations 2022.
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Australia – Tax Fines for Foreign Investment Breach
On 11 April 2022, AST Tax issued first fine for foreign investment breach. AST Tax confirmed first penalty order for breaches of Australia's foreign investments rules was issued by the federal court of Australia, and attracted $250,000 in penalties. Background AST Tax is co-administrator of the Foreign Acquisitions and Takeover Act 1975 (FATA), and is…
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U.S. – Senate Bill to Report Investments in China
On 7 April 2022, Senate introduced bill re US portfolio investments in China. Senate introduced S.4051, a bill to require an annual report on United States portfolio investments in the People's Republic of China, and for other purposes; text is pending.
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U.S. – DoJ Sham Fortune 500 Takeover Bid
On 5 April 2022, DoJ, SEC issued charges re $14 billion tender offer fraud. DoJ charged Melville ten Cate with tender offer fraud, securities fraud, and wire fraud in connection with several schemes on behalf of his company, Xcalibur Aerospace Ltd. Schemes include fraud tender offer worth over $14bn, arising from ten Cate's allegedly sham…
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