Minimizing risk when buying a payments company, NYC's new labor-related executive order, and more in this issue of Business News Digest

4 min

Five Ways to Minimize Regulatory Risk When Acquiring a Payments Company

Building a successful business in the rapidly changing and growing electronic payments space has never been easy. The industry evolves almost daily with the introduction of new technologies, expanding regulatory considerations, and shifting consumer preferences. Once you've built your company, staying on top can be difficult. One way is to expand your business by acquiring complimentary companies, assets, customers, or know-how. Doing so, however, can create its own legal and regulatory challenges.

For those payments companies looking to expand through acquisition, this article highlights some of the recent legal and regulatory developments and then outlines five of the most critical areas to consider as part of the acquisition process.

Fund Forum – August 2016

This issue of Venable's Fund Forum provides further discussion on firm culture, important implications for investment advisors and others subject to the pay-to-play rule, an analysis of the final government-wide small business mentor-protégé rule, and business continuity planning for registered investment companies.

Proposed Regulations Curb Valuation Discounts for Family Controlled Entities

Last month, the IRS issued long-awaited proposed regulations under Section 2704 of the Internal Revenue Code. If adopted, they will severely curtail valuation discounts on transfers of interests in family-controlled entities, for purposes of estate, gift and generation skipping transfer taxes. The proposed regulations must await a 90-day notice and comment period, and a public hearing scheduled for December 1, 2016, before they may be made final. During this time, potentially affected taxpayers who hold interests in family-controlled entities should review their plans, and complete transfers in progress without delay.

Read our full article to learn the potential effects and key features of the proposed regulations.

New York City's New "Labor Peace" Executive Order: How Some Employers May be Required to Remain Neutral During Union Organization Campaigns

Employers have free speech rights during a union organization campaign. Just like a union, an employer may (and should) communicate with employees about whether joining a union is in the employees' best interests. Keeping employees accurately informed about the realities of union membership is often critical to opposing a union organization campaign. Otherwise, employees may join a union without considering the potential consequences of union membership, which include monthly membership dues, new grievance procedures, potential union fines, and mandatory member participation in strikes or other work stoppage activities.

Some New York City employers may now find themselves required to remain neutral during a union organization campaign. Effective July 14, 2016, New York City Mayor Bill de Blasio signed an Executive Order (the Order) that prohibits qualifying employers from opposing a union's organization effort. Continue reading for a recap of what the Order requires, to whom it applies, and some potential considerations for the future.


Upcoming Event:

Firm Culture and Financial Services: How Research May Drive Regulation

Thursday, September 29, 2016 | 3:00 - 4:00 p.m. ET

Firm culture has long been a target of regulators of the financial services industry as the culprit in many scandals. In that regard, in its 2016 Regulatory and Examination Priorities Letter, the Financial Industry Regulatory Authority (FINRA) again identifies firm culture as the cause of systemic breakdowns in the financial services industry. FINRA Chairman Richard Ketchum states: "Nearly a decade after the financial crisis, some firms continue to experience systemic breakdowns manifested through significant violations due to poor cultures of compliance." Interestingly, Chairman Ketchum also pointed to the application of research by behavioral scientists to the evaluation of firm culture. This program discusses the links between firm culture and effective compliance and risk management.

Click here for more information and to register.


Additional Articles:

Chevron v. Donziger: The Second Circuit Holds That RICO and New York Law Authorize Preemptive Strikes Against the Enforcement of Foreign Judgments

Choosing a Supplier: DoD Issues New Rules on the Sources of Electronic Parts

Digital Rights Review: Summer 2016 Federal Copyright and Trade Secret Legislation Update

Do You Import Goods Subject to AD and CVD Orders?

Don't Get Left at the Altar: Mere "Agreements to Agree" Are Not Enforceable

FDA Issues Long-Awaited New Draft Guidance on New Dietary Ingredients; While Some Industry-Friendly Changes Were Made, Others Were Not

First Release of CMS Overall Hospital Quality Star Ratings

FMC to Consider New Changes for NRAs and NSAs

Must U.S. Courts Defer to a Judicial Decision Annulling a Foreign Arbitral Award? Not If It Violates U.S. Public Policy, Says the Second Circuit

SBA Releases Final Government-Wide Small Business Mentor-Protégé Rule

Upcoming CFPB comment period deadlines, proposed updates to TRID rule, and more in the August 5, 2016 issue of CFPB Digest