Read Mayer Brown's Legal Updates covering considerations and news related to the novel coronavirus (or "COVID-19") outbreak. We will be updating this post as additional news is released.
- COVID-19 Business Continuity Updates for Commodity Futures Trading Commission Registrants and National Futures Association Members (March 13). The National Futures Association ("NFA") has coordinated with the US Commodity Futures Trading Commission to release three notices to NFA members regarding the coronavirus pandemic and firms' responses to the crisis. The notices address branch offices, swap dealer ("SD") telework and general business continuity plan updates.
- COVID-19: Compliance and Operational Risks for Financial Institutions: EU Financial Authorities Provide Initial Guidance (March 13). Financial institutions and market participants are facing operational and compliance risks in the context of COVID-19. Financial authorities are acknowledging these difficulties.
- COVID-19: Material Adverse Change Clauses in US Contracts (March 12). This Legal Update addresses the law governing material adverse change ("MAC") clauses1—including the rules that courts apply when interpreting MAC clauses and the showing that is necessary to successfully invoke a MAC clause—and discusses the applicability of MAC clauses in the context of public health crises such as COVID-19.
- NYDFS Instructs Insurers to Provide COVID-19 "Explanation of Benefits" for All Business Interruption Coverage and Report to NYDFS on Operational and Financial Preparedness (March 12). The New York Department of Financial Services ("NYDFS") issued two broad communications to the insurance industry on Monday, March 10.
- COVID-19: FINRA Addresses U.S. Broker-Dealer Preparedness and Regulatory Relief in Regulatory Notice 20-08 (March 11). On March 9, 2020, the Financial Industry Regulatory Authority ("FINRA") published Regulatory Notice 20-08 with respect to business continuity planning in connection with the recent COVID-19.
- Coronavirus COVID-19: Construction, frustration, force majeure – What does contract law say? (March 11). Contract obligations must be performed, with the sanction of a potentially painful trip to the courts, arbitration or adjudication standing behind them for failure to perform.
- COVID-19 Virus: Considerations in US M&A Transactions (March 10). The migration of COVID-19 from Asia to over 100 countries (as of March 10, 2020) is impacting financial markets, international trade, business operations and social interactions around the world.
- COVID-19 and Merger Control: Can My Deal Be Quarantined? (March 10). In light of potential challenges relating to COVID-19, companies working on global transactions should be prepared for "Plan B," as outlined in the steps below, in the event competition clearance takes longer than anticipated, potentially leading to closing delays.
- COVID-19: US SEC Staff Offers Relief for RIAs and Funds (March 4). On March 4, 2020, the Division of Investment Management of the US Securities and Exchange Commission ("Staff") issued a statement regarding the current and potential effects of COVID-19 on investment advisers and funds.
- Operation of Force Majeure in an Epidemic (February 12). This Legal Update provides an overview of how a "force majeure" clause generally functions.
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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.