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Treasury Issues Request for Information on Uses of AI in the Financial Services Sector (PDF)

"The RFI seeks input from various stakeholders to improve the Treasury's understanding of AI and consider potential legislative and regulatory enhancements.... Financial institutions should consider sharing examples of AI applications within their operations.... Financial institutions, especially smaller ones, should consider communicating any challenges or barriers to access they face in accessing AI technologies.... Financial institutions should consider commenting on the efficacy of applying scenario analyses to monitor for AI-related risks,"

Upcoming Deadlines for Reporting ISO Exercises and ESPP Stock Transfers

"[R]egulations that ... become effective for filings made in 2024 and beyond will require more businesses to e-file Copy A of their Forms 3921 and 3922 ... [If] the corporation does not outsource the filing of Forms 3921 and 3922, it will need to ensure that it has obtained a transmitter control code, or TCC, to enable it to make the electronic filings on the IRS's Filing Information Returns Electronically (FIRE) system. Obtaining a TCC can take at least 45 days."

'Computed Without Regard to Taxes Paid': The Individual Tax Consequences of Compensation Clawbacks (PDF)

"[F]or clawbacks that are effected on a gross (pretax) basis, questions arise as to how the clawback is treated for income tax purposes and what avenues an individual may have for recovering any taxes previously paid on the recouped amount.  ... [T]he answers to these questions are far from straightforward, often counterintuitive, and largely dependent on the facts and circumstances of the original payment and its clawback. As a result, an affected individual's likelihood of being made whole for taxes previously paid on recouped compensation will often need to be critically evaluated by a personal tax advisor."

SEC Adopts Long-Anticipated Pay Versus Performance Disclosure Rules (PDF)

"The adopted rules add a new tabular disclosure requirement to S-K Item 402(v) ... The method of calculating the amount of compensation 'actually paid' has been significantly changed from the original rule proposal, with several new and technical provisions ... [C]ompanies must also provide a 'clear description,' which may be presented graphically, narratively, or through a combination of both, that compares pay versus performance."

COBRA Subsidy Under ARPA: Important Deadlines Approaching (PDF)

"The COBRA subsidy under ARPA does not extend or shorten the period of COBRA continuation beyond the normal rules.... A notice in connection with the extended election period must be provided by May 31, 2021, to those individuals who qualify to elect COBRA continuation under the extended election period."

Navigating the 'Good Faith Effort' Standard for Reg BI and Form CRS Implementation

"The SEC's initial Form CRS examination program will, among other things, (i) review whether the firm has filed the Form CRS with the SEC, (ii) evaluate the firm's process for delivering the CRS to existing and new retail investors, and (iii) assess whether the Form CRS includes all the required information and is formatted in accordance with the instructions."

Reg BI and Form CRS: Firms Must Comply by June 30 But Examiners Will Apply a 'Good Faith Effort' Standard

"While the Chairman's statement acknowledged the challenges that firms are facing and the significant resources they are allocating in response to the COVID-19 outbreak, the SEC will not provide an extension.... [R]egulators may show some restraint in their examination of firms, at least in the initial post-June 30th period,,, This restraint, however, will be predicated on firms having made a 'good faith effort' to implement policies and procedures necessary to comply with Reg BI and Form CRS by the compliance date."

IRS Issues Proposed Regulations Under Code Section 162(m)

"Whether an arrangement is grandfathered must be determined by reference to applicable law.... Negative discretion still problematic, unless local law constrains use.... Vesting acceleration permitted under grandfather.... No IPO transition period.... Directors' fees and other non-employee compensation are subject to deduction disallowance.... Modification of 409A arrangements by December 31, 2020."

Some Reminders on How HIPAA Works

"[W]hat we have today is a set of privacy and security rules that work really well where they apply -- but that don't apply at all in an increasing range of situations where health information is collected, created and analyzed, including wearables, mobile applications, community and patient support groups, personal health records and a broad array of 'consumer directed' health care activities."

Massachusetts FMLA Deadlines Nearing

"Although many of the specifics regarding MFMLA's implementation are still uncertain, a few deadlines are fast approaching: [1] June 30, 2019: All employers in Massachusetts must provide employees with a notice of rights under the new law. [2] July 1, 2019: Employers must begin making deductions from wages or payments for services to fund quarterly contributions to the department. [3] September 20, 2019: Employers interested in obtaining an exemption from the MFMLA's contribution requirements must file for the exemption."