Category Archives: Orrick Alert

Orrick Alert

Did an Obscure Remark in a Recent Regulatory Publication Signal a New Interpretation of the Anti-Tying Rules?

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In 2003, the Federal Reserve released its proposed interpretation of the anti-tying provisions of the Bank Holding Company Act Amendments, in which it stated that market power and anti-competitive effects were not necessary elements of an illegal tying arrangement.  Despite substantial commentary on the Federal Reserve’s proposed interpretation from financial institutions and other regulators, including the Department of Justice, the Federal Reserve has not revised its proposed interpretation of the anti-tying provisions of the BHC Act.  This alert discusses a recent regulatory publication raising the possibility that the Federal Reserve may be revisiting its earlier stance.  For more information, please click here.

Orrick Alert

Final Regulations Implementing the Foreign Account Tax Compliance Act

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On January 17, 2013, the Internal Revenue Service (IRS) released final regulations (the Final Regulations) implementing the reporting and withholding provisions of the HIRE Act (commonly known as the Foreign Account Tax Compliance Act, or FATCA, provisions) that target noncompliance by U.S. taxpayers using foreign accounts.  The Final Regulations build on proposed regulations published on February 15, 2012, to provide additional certainty for financial institutions and government counterparts by finalizing the step-by-step process for U.S. account identification, information reporting and withholding requirements for foreign financial institutions (FFIs), non-financial foreign entities (NFFEs) and U.S. withholding agents.  For more information, please click here.

Orrick Alert

Tax Law Update: House Ways & Means Proposals for Financial Products Tax Reform

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On January 24, the House Committee on Ways & Means released a discussion draft of legislative provisions (the “Draft”) that would make fundamental changes in the taxation of certain financial products, including the treatment of derivatives held by non-dealers by requiring that they be marked to market annually with gain or loss treated as ordinary income or loss.  These changes would likely be controversial.  The Draft also proposes changes to the tax code eliminating cancellation of debt income for certain debt exchanges and modifying the taxation of market discount on distressed debt that would likely be welcomed by the business community.  Click here to read the full Tax Law Update.

Orrick Alert

Derivatives Reform in Europe: European Market Infrastructure Regulation and the Regulatory Technical Standards

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The European Market Infrastructure Regulation (EMIR) will transform the clearing and reporting of derivative contracts in the EU.  While the process for finalizing the requirements has been ongoing for some time, the regulatory and implementing technical standards were adopted last month and a number of obligations are intended to come into force in 2013.  With firms engaged in the implementation process, our regulatory team has prepared a summary Client Alert (which includes a link to a more detailed analysis of these provisions).  Click here to read more.