As of 1 November 2022 trusts and funds for joint account (fondsen voor gemene rekening) will be required to register an Ultimate Beneficial Owner (uiteindelijke belanghebbende) (UBO) with the Dutch UBO Register as managed by the Dutch Chamber of Commerce. The initial registration for existing trusts and funds for joint accounts with the UBO Register will need to be completed before 1 April 2023. A trust with a trustee located in the Netherlands must register its UBO. The same applies, for example, in case a fund for joint account is created under Dutch law. Note that the criteria that apply to determine whether a UBO of a trust or fund for joint account qualifies for registration are different from (and wide in scope) those applied to Dutch legal entities.
The assignment of arbitral claims and arbitral awards is a fast-growing market practice. When entering into agreements for such assignments, it is crucial to ensure that they comply with all the applicable legal requirements. In this context, the assignee should carefully assess the risks that may arise out of the award debtor's rights pursuant to the provisions of the law applicable at the seat of arbitration and/or at the place(s) of enforcement of the award. Under French law there is a specific mechanism called the right of "retrait litigieux" ("disputed withdrawal"). In accordance with this singular legal mechanism, which is designed as a tool to fight against speculation, when a disputed claim is assigned to a third party in the course of any judicial or arbitral proceedings, the debtor is entitled to discharge its debt by paying the assignee the actual price of the assignment, plus interest and costs, instead of the full amount of the original debt (article 1699 of the French Civil Code ). As has been seen in the FG Hemisphere v Democratic Republic of the Congo saga, the conditions and requirements for exercising the right of retrait litigieux in the context of assignment of arbitral claims or arbitral awards are uncertain under French law.
The New Labour Law (33/2021) and its implementing Regulations (together the “New Laws”) were introduced in February 2022. They apply to all private sector employers in the United Arab Emirates (“UAE”) with the exception of employers within the Dubai International Financial Centre (“DIFC”) and Abu Dhabi Global Market (“ADGM”) financial centre free zones. The New Laws represent the biggest change in the employment law landscape in the UAE for 40 years and while there will be continue to be a period of time over which the Courts will test and probe the New Laws, HR practitioners, business owners and legal counsel with responsibility for people related matters in the UAE need to be familiar with the changes and, critically, ensure compliance.
The Abu Dhabi Global Market (“ADGM”) published its Guiding Principles on Whistleblowing on 6 December 2022 (“Guiding Principles”). The Guiding Principles are intended to provide a benchmark or framework for all ADGM entities to work within, and all such entities are encouraged to review and align their own whistleblowing procedures with the Guiding Principles.
After a 4-year freeze, the Hong Kong Executive Council endorsed the Minimum Wage Commission’s recommendation on 10 January 2023 to raise the statutory minimum wage by HK$2.5 to HK$40 per hour, representing a 6.7% hike. Subject to the approval of the Legislative Council, the revised rate will come into force on 1 May 2023, the Labor day.
With organisations increasingly relying on AI technology, UK and EU regulators are turning their attention to effective regulation of AI in an effort to recognise its benefits while instilling confidence in individuals that the increasing use of AI is being deployed appropriately and lawfully. In the EU, the European Commission’s AI Act (“Act”) proposal has undergone further changes following review by EU member states. The Council of the EU approved a compromise version of the Act on 6 December 2022. The European Parliament is expected to vote on the draft by the end of March 2023, with a view to adopting the Act by the end of 2023.
Progression in technology has meant that, over the last decade, contracts have become longer, more complex and sometimes harder to negotiate as businesses have been keen to have the most protective contracts possible. Over time, businesses often build up multiple contract templates to ensure that every contracting eventuality is covered. But what if there could be a different approach?
Now that some of the hype and uncertainty around the Protection of Personal Information Act (POPIA) has settled, and data privacy and protection has become an integral part of our personal and professional lives, we can take some time to reflect on some of the aspects of data privacy legislation that are required for organisations to be compliant. No organisation operates in isolation, and organisations generally require some assistance or services from third parties in their day-to-day operations.
On 16 December 2022, the Financial Conduct Authority (FCA) published a notice confirming the Collective Investment Schemes (Individually Recognised Overseas Schemes and Miscellaneous Amendments) Instrument 2022 ("CIS 2022") became effective 1 January 2023. CIS 2022 introduces changes to the ‘s272 regime’ contained in Financial Services and Markets Act 2000 (“FSMA”) for recognising overseas collective investment funds. The Collective Investment Schemes sourcebook (“COLL”), the Decision Procedure and Penalties manual (“DEPP”) and the Glossary of definitions of the FCA Handbook are amended.
In 2021, in the context of the common agricultural policy reform 2023-2027, the European Parliament and the Council of the European Union adopted a new exemption from competition rules for certain agricultural products. Specifically, Article 210a of Regulation 1308/2013 establishing a common organisation of the markets in agricultural products (“CMO Regulation”) introduced an exclusion from the prohibition against anti-competitive agreements (or “cartels”) for certain restrictive agreements in the agricultural sector when those agreements are indispensable to achieve sustainability standards. In this latest development, on 10 January 2023, the European Commission (“Commission”) published for consultation its draft guidelines on how this exclusion should apply. The Guidelines seek to clarify how operators active in the agri-food sector can design joint sustainability initiatives in line with Article 210a.