AFIRE Tax & Regulatory Briefing: January 2020

JANUARY 31, 2020

Welcome to the new AFIRE Tax & Regulatory Briefing!

This month, much of the focus provides a glimpse of what’s to come in 2020, including new FTC reporting thresholds, the implications of new CFIUS rules for transactions involving critical tech and infrastructure, clarifications from the CFPB on the definition of “abusive practices,” and more.

Want to include your updates for the next briefing? Let us know.

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FTC Announces New Thresholds for 2020

Goodwin: “As required by the HSR Act, on January 28, 2020, the FTC released its annual adjustments to the reporting thresholds. The key number to remember is now $94 million. Generally, transactions valued at $94 million or more must be reported and cleared by the federal antitrust authorities before the transaction may close.” READ MORE.

New Rules Expand CFIUS Reach into Non-Controlling Investment and Real Estate

Stroock: “After months of anticipation, the Department of the Treasury has published its final rules implementing the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), significantly expanding the reach of the Committee on Foreign Investment in the United States (CFIUS). Formal implementation of these rules will have a significant and immediate effect for foreign investors in the United States.” READ MORE.

New CFIUS Powers Target Foreign Investors

Pensions & Investments: “The primary focus of a CFIUS review will be transactions involving critical technology and infrastructure or operations that collect sensitive personal data on U.S. citizens and the degree of foreign control of those arrangements. Critical infrastructure sectors include telecommunications, utilities, energy and transportation.” READ MORE.

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Why the Threat of an Iranian Cyberattack Should Matter

Squire Patton Boggs: “On January 6, 2020, the Cybersecurity and Infrastructure Security Agency (CISA) issued an alert stating that, ‘recent Iran-US tensions have the potential for retaliatory aggression against the US” and that organizations should, ‘assess and strengthen [] cyber and physical defenses to protect against this potential threat.'” READ MORE (pdf).

Real Estate Accounting and Reporting: Impact of New Standards and Guidance

KPMG: “This year’s report provides technical insights on accounting rules that went into effect in 2019, such as the new leasing requirements for public companies, revenue recognition for private companies, and other changes to existing US GAAP.” READ MORE (pdf).

CFPB Narrows Definition of Abusive Practices

Mortgage Professional America: “According to a new policy statement, the CFPB will now focus on citing conduct as abusive “only when the harm to consumers outweighs the benefit.” The agency said it would also generally avoid “dual pleading” – meaning that if it finds that a company has been unfair or deceptive, it won’t also use the same set of circumstances to charge the company with abusiveness.” READ MORE.

OCIE’s 2020 Examination Priorities: Variations on Recurring Themes

Mayer Brown: “According to a new policy statement, the CFPB will now focus on citing conduct as abusive “only when the harm to consumers outweighs the benefit.” The agency said it would also generally avoid “dual pleading” – meaning that if it finds that a company has been unfair or deceptive, it won’t also use the same set of circumstances to charge the company with abusiveness.” READ MORE (pdf).