The Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”) recently publicly announced that it had imposed a $1 million civil monetary penalty against an undisclosed entity for repeated violations of its 2016 mitigation agreement with CFIUS, including failure to establish requisite security policies and to provide adequate reports to the Committee. Companies subject to mitigation agreements with CFIUS should take note. CFIUS has always taken seriously the obligations imposed on a…

On November 19, 2018, the Commerce Department’s Bureau of Industry and Security (“BIS”) issued an advance notice of proposed rulemaking (“ANPRM”) seeking public comment on “criteria for identifying emerging technologies that are essential to U.S. national security.”[1]  The ANPRM was issued pursuant to the Export Control Reform Act of 2018 (“ECRA”), a law enacted in August 2018 that authorizes the Commerce Department (in coordination with other federal agencies) to issue regulations…

For the first time in 30 years, Congress may expand the jurisdiction of the Committee on Foreign Investment in the United States (“CFIUS”).  In testimony before the Senate Banking Committee on January 25, 2017, three Administration officials expressed support for the Foreign Investment Risk Review Modernization Act of 2017 (“FIRRMA”), which would significantly amend CFIUS’s authorizing statute, as detailed in our prior Client Memo.  FIRRMA has attracted substantial bipartisan support from both houses of…

Many have commented on the suit filed last week challenging the CFPB’s arbitration rule, but few have considered what impact, if any, the suit could have on the fast-approaching compliance date of March 19, 2018. As a reminder, the Chamber of Commerce and other trade associations filed a long-anticipated suit last week seeking to vacate and set aside the CFPB’s arbitration rule.  In their complaint, the industry representatives have claimed that (1) the CFPB’s adoption…

Since the CFPB issued its Arbitration Rule in July, most commentators have focused on ways the rule may be blocked from going into effect. Chief among these is the possibility that Congress will vote to overturn the rule under the Congressional Review Act, and the House did promptly vote in favor of overturning the rule on July 25, 2017. Last week, however, the Senate began its August recess without a vote on the CFPB Arbitration…

Yesterday afternoon, the CFPB issued a final rule that, once it becomes effective, is designed to prohibit providers of certain consumer financial products or services from using pre-dispute arbitration clauses to bar consumers from participating in class action lawsuits.  Although covered providers will still be permitted to include mandatory arbitration clauses in agreements with consumers, covered providers will no longer be permitted to use such clauses to bar class actions.  The rule becomes effective 60 days…

In October 2016, the U.S. federal banking agencies jointly issued an advance notice of proposed rulemaking regarding enhanced cyber risk management standards (the “Enhanced Standards”).  The Enhanced Standards would apply on an enterprise-wide basis to large financial institutions and their service providers, as detailed in this memorandum.  The U.S. federal banking agencies proposed the Enhanced Standards in an era of increased cybersecurity attacks and dangers, where heightened cybersecurity standards and compliance are inevitable. Other regulators…