I’m not sure our readers were holding their collective breath in anticipation of the OCC’s Bank Supervision Operating Plan for Fiscal Year 2023, which was announced last week. Still, the Operating Plan always matters and is carefully reviewed − and addressed − by the big banks, and this year’s guidance will not be an exception. Take a look at my summary of the Operating Plan.  

There was, however, a very notable development from the CFTC: its published order settling charges against a registered commodity trading advisor for failing to register as a swap execution facility. According to my colleague Peter Malyshev, this “represents the CFTC’s first attempt to sanction an otherwise CFTC-registered entity under its recently expanded interpretation of what constitutes a SEF.” This is a very significant development, and Peter offers some context in his news analysis below. 

Two important developments in the UK − on EU securitization regulation and the impact on directors’ duties following the UK Supreme Court’s ruling on the Sequana case − caught our eye as well, and so our two recent Clients & Friends memos are included in this week’s Cabinet News and Views. 

As always, we welcome any comments or questions. Just drop me a note here.

Daniel Meade 
Editor, Cabinet News and Views

By Daniel Meade

Partner | Financial Regulation

Last week, the Office of the Comptroller of the Currency released its Bank Supervision Operating Plan for Fiscal Year 2023. The Operating Plan sets out the OCC’s supervision priorities and objectives for the fiscal year, which began on October 1. Here's a closer look.

Read More »

By Peter Y. Malyshev

Partner | Financial Regulation

On September 26, the Commodity Futures Trading Commission published an order settling charges against Asset Risk Management, LLC, a registered commodity trading advisor headquartered in Houston, Texas, for failing to register as a swap execution facility. This order represents the CFTC’s first attempt to sanction an otherwise CFTC-registered entity under its recently expanded interpretation of what constitutes a SEF. 

Read More »

Earlier this week the European Commission published its review of the EU Securitisation Regulation.

Our Clients & Friends Memo, accessible here, breaks down the report.

The UK's Supreme Court has delivered its long-awaited decision in BTI 2014 LLC v. Sequana S.A. [2022] UKSC 25. It is a significant decision for the law of directors’ duties. For the first time, the UK’s highest appellate court has considered the circumstances in which directors can be liable for failing to take into account the interests of creditors, thereby upholding the Court of Appeal’s 2019 decision. In doing so, the Supreme Court affirmed a line of common-law cases that have developed the law in this area and have held that directors are required to prioritize creditors’ interests in an insolvent liquidation over those of shareholders, and to begin taking creditors’ interests into account where insolvency “looms.” The Court’s unanimous decision is also noteworthy because it confirms the UK has definitively departed from the position in other common-law jurisdictions – including Delaware and Canada – that have declined to impose an equivalent duty.

You can access our Clients & Friends Memo here.

Registration will be closing soon for Cadwalader's annual Finance Forum at the JW Marriott in Charlotte on Thursday, October 27. 

Programming will begin at 1:00 p.m. and continue throughout the afternoon, followed by a networking reception. Click here for a list of current panel topics and to register.