The guide enables side-by-side comparison of critical equity derivatives issues across key jurisdictions.

By Rafal Gawlowski

The past several years emphasized the growing importance of strategic equity solutions as part of corporate finance advisory services for both listed issuers and their controlling shareholders. Strategic equity solutions are a range of equity derivatives products, including capital-raising, equity-linked products, structured share buy-back and share accumulation and disposal products, and hedging and monetization products.

Interestingly, the period of the global pandemic highlighted the

The deadline for implementing the Duty for closed products and services is fast approaching, however firms’ work on the Duty is far from over as they must successfully pivot to addressing the Duty as part of their day-to-day operations.

By Nicola Higgs, Becky Critchley, and Charlotte Collins

31 July 2024 will mark one year since the Consumer Duty came into force for new and open products and services, and the deadline for implementing the Duty for closed products

The proposal seeks to make executive compensation arrangements more sensitive to risk and would require complex risk management programs to ensure compliance.

By Arthur S. Long, Pia Naib, and Deric Behar

On May 6, 2024, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Federal Housing Finance Agency (FHFA), and the National Credit Union Administration (NCUA) (collectively, the agencies) issued a joint Notice of Proposed Rulemaking (the Proposed Rule) to curb “excessive risk-taking” resulting from incentive-based compensation arrangements. The Board of Governors of the Federal Reserve System (FRB) and the Securities and Exchange Commission (SEC) did not join in the Proposed Rule.[1],[2] Critically, without the FRB’s participation, the Proposed Rule may not be finalized.

The Proposed Rule seeks to curtail incentives for certain financial services sector officers, employees, and directors to take inappropriate risks as a result of seeking excessive compensation, fees, or benefits. It uses a tiered approach based on asset size categories, where covered institutions (defined below) within the two largest asset size categories would be subject to prescriptive requirements related to the structure of their incentive-based compensation arrangements, including incentive award limits, deferral requirements, downward adjustments, forfeitures, and clawbacks.

The Proposed Rule re-proposes the regulatory text previously proposed in June 2016 (with a new preamble that acknowledges developments and supervisory learnings) and seeks additional feedback from commenters on potential alternatives to various provisions.

With regulators keeping close watch, the results underscore the need for ongoing climate risk management investment and adaptation within the financial sector.

By Betty M. Huber, Arthur S. Long, Pia Naib, and Deric Behar

On May 9, 2024, the Board of Governors of the Federal Reserve System (FRB) published summary results of a pilot climate scenario analysis (CSA) that explored how resilient six of the largest US bank holding companies (by total assets) are to climate-related financial risks. The analysis is intended to help the FRB “learn about large banking organizations’ climate risk-management practices and challenges and to enhance the ability of large banking organizations and supervisors to identify, estimate, monitor, and manage climate-related financial risks.”

The CSA was first announced in September 2022, and was intended as an exploratory exercise. It does not therefore result in any capital or supervisory consequences for the participating financial institutions.

FINRA’s guidance sheds further light on the new rule, which will permit firms to elect “non-branch” designation for a private residence where an associated person conducts specified supervisory activities.

By Marlon Q. Paz, Naim Culhaci, and Donald Thompson

The Financial Industry Regulatory Authority (FINRA) has issued much-needed guidance on residential supervisory locations (RSLs). The new guidance supplements its January 23, 2024, Regulatory Notice 24-02 (Reg. Notice 24-02) on new supplementary material .19 under FINRA Rule

The white paper examines how generative AI might shape the global derivatives markets, including new opportunities for industry stakeholders.

ISDA Future Leaders in Derivatives (IFLD) is a cohort of emerging leaders in the derivatives space representing financial services institutions, buy- and sell-side firms, and law firms (including Latham & Watkins, represented by associate Naffie Lamin).

In the white paper, IFLD provides guidance to regulators, financial institutions, technology providers, and other industry stakeholders to understand and explore potential use cases for

The final guidance clarifies the scope and application date of the rule, and answers questions around good practice and accessing third-party data.

By Nicola Higgs and Jaime Martin

On 23 April 2024, the FCA published its final guidance (FG23/4) on its new anti-greenwashing rule, which comes into force on 31 May 2024. The anti-greenwashing rule will require all authorised firms to ensure that any reference they make to the sustainability characteristics of their financial products and services are

The FCA is proposing to allow asset managers to rebundle payments for third-party research and trade execution.

By Rob Moulton, Nicola Higgs, and Charlotte Collins

On 10 April 2024, the FCA published its much-anticipated Consultation Paper on payment optionality for investment research (CP24/7). The Investment Research Review made a series of recommendations in the summer of 2023 to help boost the UK investment research market, which the government committed to taking forward (see this Latham blog post).

The Proposal clarifies the FDIC’s bank merger approval process but may prove challenging for new large bank consolidations with the FDIC as the primary regulator.

By Arthur S. Long, Pia Naib, and Deric Behar

On March 21, 2024, the Board of Directors of the Federal Deposit Insurance Corporation (FDIC) approved Proposed Revisions to its Statement of Policy on Bank Merger Transactions (the Proposal). The Proposal adopts a principles-based approach and aims to update, strengthen, and clarify the FDIC’s

Fighting financial crime, protecting consumers’ needs, and bolstering wholesale markets are the regulator’s key priorities for the year ahead.

By Rob Moulton, Nicola Higgs, Becky Critchley, and Charlotte Collins

On 19 March 2024, the FCA published its Business Plan for 2024/25, setting out its priorities for the year ahead. While the Business Plan now takes on less significance than it did historically given other publications in circulation such as the FCA’s 3-year Strategy and the Regulatory