Funds Talk: August 2019

Topics covered in this issue include: 

• NY Regulatory Guidance on AI Illustrates Compliance Challenges
  DFS warns insurers that the use of certain predictive models and data sources in underwriting life insurance products might be discriminatory and noncompliant with applicable state and federal legislation. In a January 2019 circular letter that has prompted concern within the life sector, the regulator issued detailed guidance on the use of artificial intelligence (AI) in underwriting those products, aimed at supporting and improving compliance with antidiscrimination requirements and transparency. 
  
  
• Delaware Court of Chancery Upholds a Seller’s Use of Contractual Provisions to Maintain Attorney-Client Privilege Over Premerger Communications
  In a recent decision, the Delaware Court of Chancery ruled that the seller in a merger could enforce a provision in the merger agreement protecting its privilege over premerger emails with its counsel.
  

• SEC Issues Statement on LIBOR Transition
  On July 12, the staffs of the Division of Corporation Finance, Division of Investment Management, Division of Trading and Markets, and Office of the Chief Accountant of the Securities and Exchange Commission issued a statement highlighting risks for market participants to consider as they transition away from Libor.
   
  
• Stricter Data Privacy and Cybersecurity Laws May Be Coming Soon to New York: Updates on the SHIELD Act and the New York Privacy Act
  New York is gearing up to enact some of the toughest cybersecurity, privacy and data protection laws in the country. Modeled on the European Union’s General Data Protection Regulation (GDPR) and the California Consumer Protection Act (CCPA), two privacy bills introduced this year would impose strict rules protecting New Yorkers’ personal data and fundamentally change how social media companies operate.