Shearman Logo

Shearman & Sterling is firmly committed to helping clients achieve their business objectives. With a focus on our clients’ changing needs and goals, we deliver a wide range of materials and services to keep them up to date and informed.

Perspective

You Get What You Get and You Don’t Get Upset: Delaware Bankruptcy Court Enforces Anti-Assignment Clause

Jul 17, 2018

On June 20, 2018, the United States Bankruptcy Court for the District of Delaware issued a decision sustaining the debtors’ objection to the proof of claim filed by Contrarian Funds, LLC. The bankruptcy court found that the relevant anti-assignment clause in certain promissory notes that were the subject of the proof of claim was enforceable under Delaware law, general tenets of contract law, and the Uniform Commercial Code (“UCC”). As a result, the assignment was of no force and effect and the assignee had no valid claim in the bankruptcy case.

Perspective

Financial Regulatory Developments Focus

Jul 12, 2018

In this week's newsletter, we provide a snapshot of the principal U.S., European and global financial regulatory developments of interest to banks, investment firms, broker-dealers, market infrastructure providers, asset managers and corporates.

Perspective

Sanctions Round Up: Second Quarter 2018

Jul 11, 2018

This quarter, companies around the globe prepared to exit Iran-related business in the wake of U.S. sanctions snap-back.  Meanwhile, OFAC provided a path to relief to designated Russian entities, extending several deadlines to allow for the continued divestment by their oligarch owners.  The U.S. took no new sanctions actions against North Korea as the two countries entered highly anticipated negotations surrounding denuclearization.  Finally, in its first enforcement action of the year, OFAC stressed the importance of empowering compliance personnel to prevent prohibited transactions.

Perspective

Shearman & Sterling’s Recent Trends and Patterns in the Enforcement of the Foreign Corrupt Practices Act (FCPA) / FCPA Digest

Jul 10, 2018

Shearman & Sterling’s bi-annual Trends & Patterns in FCPA Enforcement report provides insightful analysis of recent enforcement trends and patterns in the US, the UK and elsewhere, as well as helpful guidance on emerging best practices in FCPA and global anti-corruption compliance programs.

Perspective

Ya Gotta Have [Good] Faith: Court of Appeals for the Ninth Circuit Holds That in the Context of Plan Voting, a Bad Faith Showing Requires More Than a Negative Impact on Creditors

Jul 09, 2018

When it comes to voting on a plan, Section 1126(e) of the Bankruptcy Code provides that a bankruptcy court may designate (or disallow) the votes of any entity whose vote to accept or reject was not made in “good faith” (a term that is not defined in the Bankruptcy Code). On June 4, 2018, the United States Court of Appeals for the Ninth Circuit issued a decision reversing that of the lower courts and holding that a bankruptcy court may not designate claims for bad faith simply because (1) a creditor offers to purchase only a subset of available claims in order to block a plan of reorganization, and/or (2) blocking the plan will adversely impact remaining creditors. This decision confirms that a creditor may cast its votes in order to protect its own interests. On the other hand, bad faith may be found where a creditor votes in order to obtain some benefit to which it was not otherwise entitled or for some ulterior purpose unrelated to its role as creditor.

Perspective

Senior SEC Official Clarifies Whether and When Digital Assets Are Securities

Jul 05, 2018

In wide-reaching remarks at the Yahoo Finance All Markets Summit: Crypto on June 14, 2018, William Hinman, the director of the SEC’s Division of Corporation Finance, affirmed that lawyers and promoters should focus on to the economic substance of a digital transaction, rather than to the label in analyzing whether the U.S. securities laws apply.

Perspective

Financial Regulatory Developments Focus

Jul 05, 2018

In this week's newsletter, we provide a snapshot of the principal U.S., European and global financial regulatory developments of interest to banks, investment firms, broker-dealers, market infrastructure providers, asset managers and corporates.

Perspective

Smoothing the Path for Financial Institutions on Brexit

Jul 03, 2018

The U.K.’s HM Treasury has set out its approach to the grandfathering of EU27 businesses on Brexit and to how existing EU financial services directives and regulations are to be adopted into U.K. law at the moment of Brexit (“onshoring”).

Perspective

SEC’s Proposed Rule 6c-11 Would Level the ETF Playing Field

Jul 02, 2018

The Securities and Exchange Commission on June 28, 2018 proposed a long-anticipated rule that would allow most exchange-traded funds (ETFs) to operate and come to market without applying for individual exemptive orders.

Perspective

SEC Replaces Requirement to Disclose Liquidity Buckets With Requirement to Disclose Effectiveness of Liquidity Risk Management Program

Jul 02, 2018

In a split vote on June 28, 2018, the Securities and Exchange Commission adopted a new rule to require certain open-end investment companies to disclose in their annual or semi-annual shareholder reports information about the operation and effectiveness of their liquidity risk management program.