Global Perspectives

Financial institutions beware: Delaware seeks third party discovery in money order dispute

In ongoing litigation in the United States Supreme Court, Delaware has asked other states to produce evidence of financial institutions’ escheat practices as well as their identities. If the Court agrees to allow Delaware’s request, there could be far reaching implications for financial institutions. For example, Delaware could potentially issue direct requests to non-party holders or use this information to initiate audits against certain financial institutions.

Challenging jurisdiction under the LCIA Rules – the English Commercial Court clarifies when rights may be lost

The English Commercial Court has recently clarified the interpretation of time limits under the LCIA Rules 2014 for a party to bring an objection to the substantive jurisdiction of an arbitral tribunal.

Where a party has an objection to jurisdiction at the outset of the proceedings, it has until the time for filing its statement of defence to raise its objection.

The court also confirmed that, under the LCIA Rules 2014, potential claimants cannot bring claims in respect of multiple arbitration agreements under one request for arbitration. Where claimants attempt to do so, the request will be invalid and no arbitration will have been commenced.

The decision provides certainty in relation to when parties involved in an LCIA arbitration can exercise the fundamental right of objecting to a tribunal’s jurisdiction. It also underlines the importance of complying with any particular procedural requirements in commencing arbitral proceedings, as failure to do so can have very serious consequences for the defaulting party.

The full judgment can be found at A v. B [2017] EWHC 3417.


Abu Dhabi Financial Services Regulatory Authority Issues Guidance on Initial Coin Offerings

Earlier this month, the Financial Services Regulation Authority of the Abu Dhabi Global Market joined the ranks of various regulatory agencies from countries, including Australia, Canada, and the United States that have addressed ICOs, by issuing Supplementary Guidance on the regulation of ICOs and virtual currencies. The Guidance offers parameters for classifying, for legal and regulatory purposes, various types of digital assets. The Guidance is generally consistent with the product-and activity-based regulation approaches of the United States and the European Union.

Hong Kong Companies – new compliance requirement effective from 1 March 2018

The Companies (Amendment) Ordinance 2018 (the “Amendment Ordinance”) will come into operation on 1 March 2018. New register to be kept.

10,000 Foot View

The Collaborative Decade

Welcome to the Reed Smith Conversations, a new podcast from Reed Smith, produced by Wf360 productions. Reed Smith Conversations is a four-part series, each a highly interactive discussion on a topic of importance to all of us, perhaps now more than ever. In each episode, you’ll hear from people who may shake up your thinking on issues you thought you already knew well.