Antitrust/International Law: U.K. Office of Fair Trading Issues Draft Guidelines on Antitrust Investigative Process

On August 20, the United Kingdom Office of Fair Trading (OFT) issued a proposed guide to its antitrust investigation procedures under the Competition Act 1988 as a consultation paper. The OFT webpage on the paper states that the guide "is intended to give interested parties the opportunity to provide views and comments on the proposed new guidance." The OFT will accept responses to the paper by mail or email until November 12, 2010.

International Trade: U.S. Treasury Issues Iranian Financial Sanctions Regulations

On August 16, the U.S. Department of the Treasury issued the Iranian Financial Sanctions Regulations (IFSR) to implement subsections 104(c) and 104(d) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA). According to Treasury, "CISADA requires the Secretary of the Treasury to issue regulations that prohibit, or impose strict conditions on, the opening or maintaining of a U.S. correspondent account or payable-through account for a foreign financial institution that the Secretary of the Treasury finds knowingly engages in the following activities:
"Facilitating the efforts of the Government of Iran (GOI) to acquire or develop weapons of mass destruction (WMD) or delivery systems for WMD or to provide support for terrorist organizations or acts of international terrorism;
"Facilitating the activities of a person subject to financial sanctions pursuant to United Nations Security Council Resolutions 1737, 1747, 1803, or 1929, or any other Security Council Resolution that imposes sanctions with respect to Iran;
"Engaging in money laundering, or facilitating efforts by the Central Bank of Iran or any other Iranian financial institution, to carry out either of the above; or
"Facilitating a significant transaction or transactions or providing significant financial services for Iran's Islamic Revolutionary Guard Corps (IRGC) or any of its agents or affiliates whose property or interests in property are blocked pursuant to the International Emergency Economic Powers Act (IEEPA) or a financial institution whose property or interests in property are blocked pursuant to IEEPA in connection with the GOI's proliferation of WMD or support for international terrorism."

Insurance/Securities/International Law: Recent U.K. Financial Services Authority Actions

Two sets of recent actions by the United Kingdom Financial Services Authority (FSA) may be of interest to insurance and financial services practitioners. First, on August 17, the FSA banned five individuals for failings related to insurance fraud. The FSA also imposed one of its largest fines of £150,000 for insurance fraud on one of the five individuals and £50,000 on another. Since the beginning of 2010, the FSA has banned 14 individuals for failings relating to insurance businesses, with fines totaling more than £500,000.

Second, on August 25 the FSA published a discussion paper that considers fundamental changes to the regulation of trading activities. This was one of the key recommendations of the so-called Turner Review (i.e., a review by the FSA's Chairman Lord Turner) following material trading losses incurred during the United Kingdom's financial crisis. The FSA stated that it will accept responses to the discussion paper until November 26, 2010, and will issue a "feedback statement" in the first half of 2011.

E-Rulemaking: Federal Times Article on DOT Pilot Project

An August 22 article in Federal Times reported on a pilot project that the Department of Transportation is running, in collaboration with the Cornell e-Rulemaking Institute, to increase public participation in the rulemaking process through electronic media. The project reportedly includes the creation of a website with the URL www.regulationroom.org, an online moderator to field comments from the public, and even a Facebook page.

Antitrust: Justice Department and FTC Issue Revised Horizontal Merger Guidelines

On August 19, the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) jointly announced their issuance of revised Horizontal Merger Guidelines that outline the principal analytical techniques, practices, and the enforcement policy of the DOJ and the FTC Department of Justice and the Federal Trade Commission (the “Agencies”) with respect to mergers and acquisitions involving actual or potential competitors under the federal antitrust laws. The announcement states that the revised Guidelines "mark the first major revision of the merger guidelines in 18 years," and sets out a summary of the principal changes.

Environment: EPA Proposed Rules on Greenhouse Gases

On August 12, the Environmental Protection Agency announced that it "is proposing two rules to ensure that businesses planning to build new, large facilities or make major expansions to existing ones will be able to obtain Clean Air Act permits that address their greenhouse gas (GHG) emissions. In the spring of 2010, EPA finalized the GHG Tailoring Rule, which specifies that beginning in 2011, projects that will increase GHG emissions substantially will require an air permit. Today’s rules will help ensure that these sources will be able to get those permits regardless of where they are located." The announcement also stated that "[i]n the first rule, EPA is proposing to require permitting programs in 13 states to make changes to their implementation plans to ensure that GHG emissions will be covered. All other states that implement an EPA-approved air permitting program must review their existing permitting authority and inform EPA if their programs do not address GHG emissions." The EPA will accept comment on the first proposal for updated state implementation plans for 30 days after publication in the Federal Register, and on the second proposal for the federal implementation plan for 30 days after its August 25 hearing on the plan.

Securities/Commodities: Recent SEC and CFTC Activity on Swaps

On August 13, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly issued two releases pertaining to swaps. First, the SEC and CFTC announced that their staffs "will hold a public roundtable on August 20 to discuss issues related to governance and conflicts of interest in the clearing and listing of swaps and security-based swaps." The release noted that the roundtable "will assist both agencies in the rulemaking process to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act." The release includes details about attendance in person and by phone.

Second, the SEC and the CFTC published a joint advance notice of proposed rulemaking (ANPR) that requests public comment to assist both agencies in further defining certain key terms and prescribing regulations regarding "mixed swaps" as required by Title VII of Dodd-Frank. The press release regarding the ANPR states that the agencies "invite public comment with respect to all aspects of the statutory definitions of these key terms," and on the regulation of "mixed swaps." The SEC has a portal for comments on the ANPR.