Firm Advice: Your Weekly Update

Recently, the DOJ and SEC issued A Resource Guide to the U.S. Foreign Corrupt Practices Act. The FCPA prohibits U.S. persons and businesses and all companies listed on U.S. stock exchanges from making corrupt payments to foreign official to obtain or retain business. The FCPA also mandates that these companies maintain accurate books and a system of internal accounting controls. The goal of the Resource Guide is to help companies “abide by the law, detect and prevent FCPA violations, and implement effective compliance programs.” The Resource Guide explains the intricacies of which companies are subject to the law and the types of transactions are likely to violate the law. In a recent Client Alert, Latham & Watkins provides a summary of the Resource Guide and the nine most relevant and important areas. The Client Alert is available for download here.

The Fiscal Cliff is looming in 2013, and with it is the specter of increased taxes. Both the cliff itself and any potential compromise are likely to include increased marginal tax rates and capital gains taxes.  While some people may wish to accelerate income into 2012 to avoid the increased taxes, Section 409A of the Internal Revenue Code severely limits the “ability of employers and employees to change the time of payment for most types of compensation.” In a recent Client Alert, Skadden presents “Strategies for Accelerating Incoming into 2012,” focusing on methods of accelerating income that avoid the limitations of 409A.

The U.S. Secretary of the Treasury recently exempted foreign exchange swaps from certain regulations under the Commodity Exchange Act. These swaps will not be subject to central clearing, margin or exchange trading requirements.  In a recent Client Alert, Mayer Brown explains the qualifications for foreign exchange swaps and the consequences of their exemption.