On May 21, 2024, the Council of the European Union (the Council) formally signed off on the latest draft of the European Union’s (EU) Artificial Intelligence Act (AI Act) (see the press release here). This marks the final seal of approval from the EU legislators. The text will officially become law once it is signed by Presidents of the European Parliament and of the Council and published in the Official Journal of the EU. This could take place within the...

The OECD’s Pillar Two is here - many jurisdictions have locally enacted legislation that became effective on January 1, 2024. Pillar Two generally applies to multinational companies (MNCs) with revenue of at least EUR €750M, and while the global legislative process and further OECD guidance will continue to evolve, it requires MNCs to evaluate their potential global minimum tax expense under Pillar Two through a data intensive calculation process. This presents a significant operational challenge that may result in...

Market participants continue to focus on the latest developments with inflation as one of the key determinants for central banks’ monetary policy decisions. Last week, the European Commission shared the latest series of inflation forecasts for the Eurozone: they came in lower than previously expected with inflation being projected at 2.5% for 2024 and 2.1% for 2025, as reported by the Financial Times. This improvement is attributed to lower costs of imported goods This has further supported investors’ belief about a...

A proposal for the taxation of cross-border branches known as “the head office tax” or “HOT” system is currently making its way through the EU legislative process. The HOT proposal is aimed at simplifying corporate tax rules for micro, small and medium enterprises (SMEs) during their early stages of expansion. It appears to be generally supported by the European Parliament and is seen by the EU as complementary to the more controversial BEFIT proposal aimed at large companies. Both proposals...

Von der Leyen pledges action on foreign disinformation if re-elected European Commission President Ursula von der Leyen has vowed to take firm action against foreign disinformation by proposing a new law if she secures a second term. Less than a month before the election, President von der Leyen called for more action in countering foreign meddling during a speech she made in Denmark on Tuesday. Ahead of the election, cybersecurity officials, experts and politicians are anticipating a surge of disinformation which Europe are...

On 14 May 2024, the European Securities and Markets Authority (ESMA) released its final report on the guidelines on funds’ names using ESG or sustainability-related terms (the “Guidelines”), which also include a minimum investment threshold and qualifying criteria for different categories of ESG- and sustainability-related terms. The purpose of these Guidelines is to ensure that fund names using ESG- or sustainability-related terms are fair, clear and straightforward. Background  As part of its efforts to combat greenwashing, in November 2022, the...

This article was originally published in the ACG Middle Market DealMaker Magazine | Spring 2024 issue on May 6, 2024 and is republished here with permission. Historically, many private equity firms have let their portfolio companies independently manage cybersecurity. Given the increase in data and cyber risks, sophistication of threat actors, and impact and cost of breaches, leading PE firms are taking a new collaborative approach. While portfolio companies are still able to operate independently, PE firms and their deal teams...

Occasionally, an attorney may draft a United States Will for an international client who holds assets in more than one country. The attorney may pull a model Will out of their file cabinet or off the computer and change the first page. This could involve adding a preamble on the first page stating that this Will pertains only to United States property. The printed back of the Will may declare that this is the client’s “United States Will.” Thus,...