In this update, we take high-level review of major issues faced by private fund managers investing across the globe. In August and September, private fund managers with U.S. investors faced the broadest expansion of SEC regulation since Dodd-Frank, while European managers worked through the details of ESG reporting. Enforcement continued to be laser-focused on digital assets (but courts didn’t always agree with them), Finfluencers, custody and marketing, while new employment and privacy requirements raised unique issues for asset managers.
Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector has placed OJK in a more central position to investigate crimes in the financial services sector. As an implementing rule, OJK has issued Regulation Number 16 of 2023 on Investigation of Crimes in the Financial Services Sector which covers, among other things, the general scope of crimes in financial services sector, members of authorized teams of investigators, the investigative authorities and powers, and available alternative settlement mechanics.
Baker McKenzie’s Sanctions Blog published the alert titled Wagner is proscribed by the UK government on 15 September 2023. Read the article via the link here. Please also visit our Sanctions Blog for the most recent updates.
Important amendments to the Companies Act, No. 71 of 2008, which came into effect on 1 April 2023 and the Companies Regulations, 2011, which came into effect on 24 May 2023, have implications for companies registered and incorporated in accordance with the laws of South Africa.
In 2022 and 2023, following the collapse of the key global players in the crypto industry, regulators around the world closely scrutinized crypto activities and tightened the regulations for digital asset businesses. This tightening primarily concerns the protection and segregation of customers’ assets, which has become standard practice since the crypto crash. To keep up with the dynamic and evolving regulatory developments, we have revised this publication to provide an updated overview of regulations pertaining to digital assets in Thailand.
On 31 August 2023, the Financial Information Unit (UIF, for its Spanish acronym) issued Resolution UIF No. 169/2023, by which new guidelines were established for the management of money laundering and terrorist financing risks and minimum compliance for obliged entities of the sector (companies that carry out capitalization and savings operations) in order to manage procedures of control for risks generated by possible money laundering and terrorist financing actions by third parties. The Resolution will become effective on 1 November 2023.
On 2 August 2023, the Financial Services Authority or Otoritas Jasa Keuangan (OJK) issued its Rule No. 14 of 2023 on Carbon Trading on Carbon Exchange (“OJK Rule 14/2023”). OJK Rule 14/2023 is issued as one of the implementing regulations of Law No. 4/2023 on Development and Strengthening of the Financial Sector.
OJK Rule 14/2023 sets out the standard criteria for carbon units that will be traded on a carbon exchange, as well as the licensing requirements for any company that will apply to become a carbon exchange.
On 25 August 2023, the United States Treasury Department issued a notice of proposed rulemaking regarding tax reporting by brokers of transactions involving the sale or exchange of digital assets (“Proposed Regulations”). These long-awaited Proposed Regulations are in response to section 80603 of the Infrastructure Investment and Jobs Act of 2021, which expanded the scope of information reporting obligations for brokers under Code section 6045 to cover transfers of digital assets.
On 22 July 2023, the Competition and Consumer (Consumer Data Right) Amendment Rules (No. 1) 2023commenced. The amending rules enhance the existing Consumer Data Right (CDR) regime for business consumers by improving access to and use of CDR data for businesses and enabling more participants in the CDR regime to use third-party service providers.
After nearly 18 months of consideration, the SEC has finalized its Private Fund Adviser Rule. The Rule represents the most significant shift in SEC regulation of private funds since the implementation of Dodd-Frank, and its wide-ranging requirements will affect both US and Non-US Fund Managers (including many entities previously exempt from SEC regulation).