MAGAZINE

October 2022 Issue

Financier Worldwide Magazine


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COVER STORY

The future favours the bold: leadership in times of trouble

Dedicated, and aware of themselves and their contexts, bold leaders act out of integrity as opposed to conformity. This accompanies a values-based vision that inspires others to excel.

FEATURES

Responsible investing – the PE approach

As ESG impacts investment portfolios, it is vital that PE firms incorporate responsible investing into their general business strategy. It can no longer be considered a side issue, particularly amid burgeoning interest from investors and regulators alike.

Mitigating reputational risk in financial services

By employing a standardised approach to risk management, organisations can identify systemic or operational issues that may affect them, prioritise those risks, then allocate the time and resources to managing them.

Saving Earth from space: satellites and sustainability

For many companies, the use of AI models to process satellite data to measure emissions and identify impactful environmental enhancements is key to achieving their environmental and sustainability goals.

Shaping the future: value creation in digital infrastructure

Digital infrastructure has come a long way in a short period of time, to the extent that it now makes a persuasive case for being the fourth utility after water, gas and electricity.

Efficiency and effectiveness: building a high-performing team

In an increasingly complex economic landscape, organisations are more reliant on high-performing teams to cope with growing challenges, differentiate themselves from the competition and take the business forward.

ROUNDTABLE

Risks facing directors & officers

Directors and officers (D&Os) have perhaps never faced a higher level of risk and liability than they do today. Among a raft of disruptive scenarios, coronavirus (COVID-19), climate change and environmental, social and governance (ESG) issues are shaping the risk landscape like never before. FW moderates a discussion between James Johnston at Aviva Global Corporate & Specialty, Virginie Frémat at CMS Belgium, Howard S. Suskin at Jenner & Block LLP, and Sandra Da Silva at Tokio Marine HCC.

SPECIAL REPORT

Financial services

Q&A: Managing AI in the financial services sector

FIs can have a difficult time scaling AI internally, because switching to AI may require decommissioning core legacy systems. Regulators expect FIs to assess the potential impact of using AI to support key functions, including the risk of disruption to those functions. FW discusses AI management in the financial services sector with Zayed Al Jamil, Caroline Dawson, Jamal El-Hindi, Ling Ho and Andrea Tuninetti Ferrari at Clifford Chance.

Facing unexpected events in the US financial markets: advice for regulated and unregulated entities

Cadwalader Global regulators and market participants demonstrated resiliency throughout the pandemic and came out on the other side with better, stronger BCDR plans and a heightened ability to face the next crisis.

US SEC updates regulatory strategic plan – global capital markets impact

Latham & Watkins LLP Current regulatory activity by the SEC has been described by some as using enforcement cases as an expression of regulatory policy, and, by others, as lacking clear policy direction.

The EU’s Payment Services Directive: following a road well-travelled

Cleary Gottlieb Steen & Hamilton LLP On 20 October 2021, the European Commission sent a ‘call for advice’ to pan-EU banking regulator the European Banking Authority, with the objective of gathering evidence on the application and impact of the PSD2.

The Financial Services and Markets Bill: a mixed bag of regulatory reform

Womble Bond Dickinson The most pressing reason for the new law, and probably the main driver behind its publication, is to sort out UK financial services laws and requirements in the wake of Brexit.

A new era for moveable transactions in Scotland

Burges Salmon Practitioners’ and funders’ patience has been rewarded, with the final proposals recommending a major modernisation of the law in this area, better suited to the needs of UK businesses and the UK financial market in 2022.

The outsized impact of blockchain on finance

Proskauer Rose LLP Though some developing financial applications are still in their nascent stage and have yet to see widespread adoption or success, many are about to change the way traditional finance industry functions have been handled for many years.

The regulation of cryptoassets: EU agrees new regulatory framework

Taylor Wessing LLP MiCA aims to create a harmonised framework for the regulation of cryptoassets in the EU and is intended to address a broad range of concerns.

Why the metaverse and AI are a double-edged sword

CMS The challenge is to understand how the benefits can be harnessed without repeating the same mistakes of ‘web2’ or opening new technological avenues for criminals to exploit.

Stakes deals – investments in alternative asset managers

Simpson Thacher & Bartlett Stakes deals were uncommon 10 years ago, but today have grown into a consistent component of the alternative asset manager landscape.

Q&A: Financial services disputes

There is no sign of the FS disputes landscape quietening down over the months ahead. Existing topics will continue to keep firms busy for some time. FW discusses financial services disputes with Nathan Willmott at Ashurst, Susy Bullock at Gibson, Dunn & Crutcher LLP and John Rhie at Quinn Emanuel Urquhart & Sullivan LLP.

TALKINGpoint

Operational resilience for financial institutions

Operational resilience is vital, as it is a mechanism for building muscle memory to address disruption to the most important services FIs provide. Organisations need to be able to adapt to disruptive events as much as they need to be able to absorb the impacts. FW discusses operational resilience for financial institutions with Duncan Scott, Bobbie Ramsden-Knowles, Stella Nunn and Rakesh Majithia at PwC UK LLP.

The impact of new information reporting requirements on digital assets

While some financial institutions are forging ahead to launch digital asset products, we are more commonly seeing incumbent FIs take a phased approach. The rapid evolution of cryptoassets is raising legitimate questions of whether global tax systems are fit for purpose in the digital age. FW discusses the impact of new information reporting requirements on digital assets with Jason McGarvey, Tim Rappoccio, Chloe Tuffin and Ryan Carey at Deloitte LLP.

Intellectual property insurance

Despite the enormous value behind IP, only a small fraction of companies has IP insurance, or for that matter, are even aware that this coverage is available. FW discusses intellectual property insurance with Sean Doyle at Ambridge Partners LLC.

DEALfront

mergers & acquisitions

Global Payments agrees to acquire EVO for $4bn

Uniting two highly complementary portfolios, worldwide provider of payment technology and software solutions Global Payments Inc. is to acquire global provider of payment technology integrations and acquiring solutions EVO Payments, Inc. in a deal valued at $4bn.

JetBlue’s $3.8bn Spirit deal

JetBlue Airways Corporation has announced it has reached a deal to acquire Spirit Airlines, Inc., for $3.8bn.

private equity & venture capital

DigitalBridge partners with Brookfield on GD Towers deal

In one of the largest infrastructure deals of the year, DigitalBridge Group, Inc. announced in July that funds affiliated with its investment management arm, together with Brookfield Infrastructure and its institutional partners, had reached an agreement to acquire a 51 percent ownership stake in GD Towers, the mobile telecommunications tower business of Deutsche Telekom AG.

Bain Capital and ADIA agree Merchants Fleet deal

In a deal that puts it at the vanguard of fleet and mobility, US fleet management company Merchants Fleet is to be acquired by private investment firm Bain Capital and a wholly owned subsidiary of the Abu Dhabi Investment Authority.

bankruptcy & corporate restructuring

3M files for Chapter 11 on behalf of subsidiary Aearo Technologies

In an attempt to resolve litigation related to combat arms earplugs version 2 (CAEv2), American multinational conglomerate corporation 3M has filed for Chapter 11 bankruptcy protection on behalf of its subsidiary Aearo Technologies.

OSG Group files pre-packaged Chapter 11 deal

In August, billing and marketing firm OSG Group Holdings filed for Chapter 11 protection with a plan to trim around $134m in debt from its balance sheet.

SPOTlight

What to know about M&A for founder-led businesses

Proskauer Rose LLP For acquirers of founder-led businesses, the opportunity to participate in the next stage of a company’s growth can sometimes feel burdened by a process that, with less deal-experienced founders, is subject to unnecessary procedural steps and delays.

ESG ratings: key considerations for stakeholders

Gibson Dunn While the universe of ESG data expands, there remains a crucial lack of understanding, transparency and cohesion of ESG rating methodology and output.

Virtual currency headwinds: OFAC and FinCEN enforcement trends and priorities

Hughes Hubbard Companies operating in the virtual currency industry should implement robust compliance programmes and closely monitor regulatory developments as the Treasury employs increasingly aggressive regulatory efforts to address the sanctions risks posed by the emerging virtual currency sector.



CONTRIBUTORS

Ambridge Partners LLC

Ashurst

Aviva Global Corporate & Specialty

Burges Salmon

Cadwalader

Cleary Gottlieb Steen & Hamilton LLP

Clifford Chance

CMS

Deloitte LLP

Gibson, Dunn

Hughes Hubbard

Jenner & Block LLP

Latham & Watkins LLP

Proskauer Rose LLP

PwC UK LLP

Quinn Emanuel Urquhart & Sullivan LLP

Simpson Thacher & Bartlett

Taylor Wessing LLP

Tokio Marine HCC

Womble Bond Dickinson


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