WWLR October 2017

The Problem With Biopiracy In Peru We speak to Kelly Sanchez – IP Lawyer at OMC Abogados & Consultores

OCTOBER 2017

NHS Under Legal Scrutiny For Poor Working Conditions / Five Year Anniversary of Auto-Enrolment: Where Are We Now? / Democracy: A Victim Of Its Own Success? / Employers Failing To Tackle Employee Knowledge Gap

Welcome to the October edition of Worldwide Law Review Magazine, featuring the latest news, comment and industry insight on the market.

In recent news, the size of the global private credit market is on course to break the $1 trillion mark by 2020, according to research by the Alternative Credit Council (ACC), the private credit affiliate of the Alternative Investment Management Association (AIMA).

We discover how Dechert, the global law firm, contributed to and sponsored this year’s survey, titled Financing the Economy 2017 later in the issue.

Elsewhere in this edition, we learn how one of the countries with the greatest biodiversity in the world, Peru have been fighting for a long time against one of the problems that most affects both safety of our products and native and emblematic resources, as well as the ancestral knowledge of indigenous people, the Biopiracy.

Lastly, a former First Assistant Attorney General of New Jersey has joined international law firm, Crowell & Moring LLP. The arrival of the state’s #2 law enforcement officer and former SDNY prosecutor, enhances the firm’s government enforcement capabilities in New York and New Jersey.

Here at Worldwide Law Review, we hope that you enjoy reading this engaging edition and look forward to hearing from you soon.

Jessica Daykin, Editor AI Global Media, Ltd. (AI) takes reasonable measures to ensure the quality of the information on this web site. However, AI will not assume any legal liability or responsibility for the accuracy, correctness or completeness of any information that is available through this web site. If errors are brought to our attention, we will try to correct them.

The information available through the website and our partner publications is for your general information and use and is not intended to address any particular finance or investment requirements.

In particular, the information does not constitute any form of advice or recommendation by us or any of our partner publications and is not intended to be relied upon by users in making or refraining from making any investment or financial decisions.

Appropriate independent advice should be obtained before making any such decision. Any arrangement made between you and any third party named in the site is at your sole risk and responsibility.

WORLDWIDE LAW REVIEW

Contents.

4.

News

6.

The Problem With Biopiracy In Peru

10. NHS Under Legal Scrutiny For Poor Working Conditions 12. Leading Cross-Border M&A Lawyer Amy Comer Joins Crowell & Moring’s London Office 14. Acc Sees Private Credit Market Reaching $1 Trillion By 2020 16. Democracy: A Victim Of Its Own Success?

18. Telecoms And Tech Industry Lead The Way 20. Employers Failing To Tackle Employee Knowledge Gap 22. Five Year Anniversary of Auto-Enrolment: Where Are We Now? 24. Middle-Market TMT Sector Sees Upsurge In Confidence Ahead Of Brexit 26. Former First Assistant Attorney General of New Jersey, Joins International Law Firm 28. Blake Morgan Advises On Acquisition Of Deltenna Ltd

20 Employers Failing To Tackle Employee Knowledge Gap

O

OCTOBER 2017 Page 3

Alcohol Safety Specialist Partners With Renault Trucks To Prevent Drink-Drive Deaths Alcohol safety and training specialist AlcoDigital has agreed a contract with Renault Trucks to showcase and offer alcohol safety devices for their latest range of LCV Master business fleet vehicles, which will be displayed at the Freight in the City exhibition on 7th November 2017.

Called the Draeger Interlock 7000, the safety devices, which can be included as an upgraded extra at the customer’s request, will monitor drivers by requiring them to pass a breathalyzer test before they can start the engine. In the event the driver fails the test, the interlock will automatically disable the vehicle for a pre-specified amount of time set by the company. The device can then request further tests throughout the journey.

the vehicles of convicted drink drive offenders in Belgium, Denmark, Finland, France, The Netherlands, Sweden and, most recently, Poland.

A Finnish study from 2013 carried out over a period of four years showed that interlock devices significantly reduced a person’s likelihood to relapse, with only 6% of convicted drink drivers reoffending compared to a rate of 30% for all convicted drink drivers.

Cost has been cited as one Drink-driving continues to pose of the main reasons for not a serious threat to road users introducing the interlock device in the UK. In August this year, in the UK sooner. If provided eight people were killed on separately, the current retail the M1 after a lorry driver fell price is around £1,500 + asleep at the wheel. The driver VAT before fitting. However, was subsequently found to be Renault customers who wish well over the UK legal drinkto upgrade their fleet to include drive limit. the AlcoDigital Interlock will be offered a significant discount Alcohol interlock devices, as part of this initiative. which are combined with comprehensive rehabilitation Suzannah Robin, who has programmes, are already been an alcohol and drug required by law to be fitted to safety expert at AlcoDigital for

over 14years, commented on the partnership.

“As many as 6,500 deaths could be prevented annually if drink driving was eliminated in Europe and several studies have already shown that an alcohol interlock fitted to a vehicle, where a driver has to pass a breath test prior to being allowed to start the engine, has been very effective in cutting repeat drink driving offences.

“We are delighted to be working with Renault Trucks to help improve road safety and reduce drink-drive related deaths.”

Grahame Neagus, Head of LCV UK & Eire for Renault Trucks, added his thoughts on this latest development.

“Fitting the Draeger Interlock system is a vital part of not only the new OptiLogistics model but also being able to offer our clients a fully optimised solution that fully

WORLDWIDE LAW REVIEW

supports our stance on providing products that are pushing the boundaries in compliance and safety in road transport.

“We have offered similar devices on our HGV range for some time now, but this is the first time that such a device and system has been offered in the LCV portfolio, which ranges from 2.8 tonnes to 4.5 tonnes GVW and one that, with the huge increase in van traffic, is ideal for its introduction. We are excited about the launch of this combination of the new Renault Trucks Master van and the Draeger Interlock at Freight in the City, where it is hoped the reaction from operators will be very positive.

We look forward to working with AlcoDigital on this project moving forward.”

,

Under-18s To Be Banned By Law From Social Media Calls to ban under 18s from using social media without prior mental health training to safeguard them from bullying and other issues associated with the use of social media.

Child health care specialists have called for a ban on anyone under the age of 18 using social media without training.

The call from StemProtect. co.uk the UKs stem cell bank comes at a time when cyber bullying and mental health issues among teens and young children are at an alltime high. An estimated one in three teenage girls is reported as suffering from depression or anxiety, which is a rise of 10% on figures just 10 years ago.

StemProtect.co.uk have drawn the line between an increase in social media use among teens, and the rising number of mental health problems they face.

When it comes to body image issues, apps like Instagram can make the problems much worse, giving teenage girls unrealistic expectations of what their own bodies should look like as they compare them with the so-called ‘candid’ and ‘real’ images professional Instagram personalities and models share on their own Instagram feeds.

StemProtect.co.uk’s solution might seem like a radical one, but it could be the solution.

They have called for a total ban on anyone under 18 using social media without first having training to help them cope with its downsides.

Spokesperson for StemProtect.co.uk Mark Hall said: “Clearly we need to do something to protect our And with the increased number children’s mental health”. of ways teens can be reached online, bullying has taken a “Training and awareness of new and worrying form over social media’s dangers help to the past decade, with cyber address mental health issues”. bullying meaning that even when children aren’t at school “We’re not calling for all under or around other people, they 18s to be banned from social can still be targeted - often media at all, that would be anonymously - online. unrealistic and unhelpful.

Instead what we’re suggesting is a mandatory procedure for under-18s to go through before

they can access it, otherwise they would need to wait until they were 18 to use things like Facebook, Instagram, Twitter and Snapchat.”

The move is one of the most practical solutions that’s been suggested to deal with the problems social media can cause to teens’ mental health.

On the one hand, this still gives them access to the sites they need to be able to work in digital fields, while also taking care to make them aware of what they can do to stay safe and happy.

Ultimately, the law would be tough to both implement and enforce, however it does offer an exciting debate for those in the legal market over the digital rights we have in this technological age.

OCTOBER 2017 Page 5

OMC Abogados & Consultores

g

The Problem With Biopiracy In Peru Peru, as one of the countries with the greatest biodiversity in the world, has being fighting since a long time ago against one of the problems that most affect both safety of our products and native and emblematic resources as well as the ancestral knowledge of indigenous people, the Biopiracy.

The Biopiracy is defined as the unauthorized, illegal and irregular access and use of biological resources and their components or the associated traditional knowledge, for their application in research and development of new products.

This practice is especially evidenced when a third party, through patents of invention,

seeks to achieve a direct or indirect appropriation of these resources and knowledge, without the prior informed consent of the country of origin of the resource or indigenous people that is the holder of the rights of the knowledge, respectively, and without providing any kind of compensation to such country or indigenous people.

Currently, the National Commission Against Biopiracy, created on May 1, 2004 and chaired by the National Institute for the Defense of Competition and Protection of Intellectual Property - INDECOPI, is the Institution in charge of promotion, protection and defense of biological resources and traditional knowledge in our country. To this date, the Comission has identified 33 cases of biopiracy in the world related to biological resources of Peruvian origin, which 18 of them have been resolved favorably our country.

According to the information handled by the Commission, Peru has 4,400 native vegetable species, of which 1,200 have medical uses, this is the reason why it is not surprising that most of the cases of biopiracy found in the world are related to patent applications of pharmaceutical compositions.

WORLDWIDE LAW REVIEW

,

Author: Kelly Sanchez – IP Lawyer Law firm: OMC Abogados & Consultores Web Address: www.omcabogados.com.pe Address: Av. 28 de Julio # 562 Edificio “ E “ Miraflores.

Lima 18 – Peru Telephone: 511 628 1238 Fax: 511 628 1241

OCTOBER 2017 Page 7

OMC Abogados & Consultores

Although it is true that technically no country can patent a plants or vegetable species, because they belong to nature and man has only discovered them, if these are manipulated or after investigations certain special properties are discovered, the protection through patents of invention or the like, such as the vegetable varieties, is feasible.

g

their use, a biopiracy act is being committed.

Similarly, before the State Intellectual Property Office of the People´s Republic of China, the National Commission against Biopiracy has submitted oppositions against patent applications for a product whose composition contains extracts of “Maca” and “Cistanche”, which are used as energizers, Since ancient times, native and a product composed and indigenous people of of the extract peels of the Peru have known how to “sacha inchi”, for treating take advantage and use the hypertension. Also the multiple medicinal properties of Commission has achieved vegetable species, knowledge that a patent filed before the that has been transmitted from Japanese Patent Office for the generation to generation and use of “yacon”, a plant that has been enriched over the grows in the Andes region years. For the pharmaceutical and used to treat diabetes, is companies, this traditional declared as abandoned. knowledge means a huge saving in research and These cases, among others, investment, because the only evidence the seriousness companies will know which of the problem, when the use species are the most useful of the patents of invention, and which can be developed which should be the legal way into new medicines. to protect an earned right as the result of a hard work and For example, among the cases research, becomes an illegal that the National Commission way of exploitation of natural against Biopiracy has been resources that are part of the defending abroad, there is a culture of a country. patent application filed before the Philippine Intellectual The Traditional knowledge Property Office called “A owned by indigenous peoples composition for enhancing is a form of human creativity male libido”, a pharmaceutical whose legal recognition and composition comprising protection should not be less the combination of extracts compared with other new from plants such as “Maca”, intellectual property objects, “Huanarpo Macho” and as they were at the time, “Chuchuhuasi”, vegetables the vegetable varieties or species that natives have the software. However, this always considered as an does not mean that the use aphrodisiac and have been of this knowledge should used for the treatment of be forbidden, because it is sexual dysfunction in men. It is a very valuable contribution clear that this is a patent based to science, but it use must on biological native resources be legal and benefit the and on a traditional knowledge sustainable development of and since the applicant does the country and even more of not have any autorization for the indigenous people.

WORLDWIDE LAW REVIEW

,

OCTOBER 2017 Page 9

NHS Under Legal Scrutiny For Poor Working Conditions

g

NHS Under Legal Scrutiny For Poor Working Conditions Union applies for new judicial review of NHSI, as it continues to encourage unlawful blanket of IR35, claiming that locums are continuing to be penalised automatically by unqualified, unsupervised NHS admin staff.

FOR THE second time this year, the unions responsible for locum doctors and healthcare workers are going to court to protect their members from overtly unfair treatment and financial damage, and stop clinical staff losing 30-50% of their pay, due to the unlawful blanket application of new tax rules.

The action by the Locum Doctors’ Union (LDU) and the Healthcare Professionals Union (HPU), both members of Independent Health Professionals Association (IHPA) follows the National Health Service improvement (NHSI)’s U-turn earlier this year on its unlawful decision to place all healthcare contractors within the IR35, irrespective of their personal circumstances.

The overturning of the unfair implementation of the offpayroll (IR35) legislation in May 2017 meant NHS Trusts

were required to carry out case-by-case assessments for each locum worker to decide whether or not each individual’s circumstances mean they should fall within IR35.

2,500 healthcare professionals around the country on how to carry out the assessments correctly and fairly.

The LDU and HPU have instructed Mr Alex Peebles, a solicitor at Duncan Lewis, to proceed with an application for a judicial review.

However, members of the LDU and HPU allege that NHSI is continuing to encourage Trusts to automatically find contracted Dr Benedict Itsuokor, president NHS workers to be within the of the Locum Doctors Union, tax rule. commented on the issues he and his colleagues are facing The unions also believe that and how these can be rectified unqualified administrative staff in order to ensure the safety of at NHS Trusts are carrying both NHS staff and patients. out the assessments without supervision, relevant training “The NHSI seem to have and knowledge of the up to forgotten their obligations as date guidance from NHSI - and per their representations in the as such many locums are pre-action protocol process. facing losing 30-50% of their Following the u-turn in May, income as a result of being the feeling was that the fair automatically found within and lawful implementation IR35. of IR35 within the NHS had been resolved amicably to The news comes despite the all stakeholders’ satisfaction fact that guidance published - NHSI was to recommend by the LDU and HPU was all Trusts consider each distributed to NHS Trusts and individuals workers’ status

WORLDWIDE LAW REVIEW

on a case-by-case basis, rather than blindly ruling all were within IR35. However, our members are reporting instances of IR35 being applied without the necessary assessments of individuals workers’ status.

“In some cases, it seems to be more identifying the individual circumstances of those who are outside of IR35, rather than fairly considering everyone. Within certain Trusts, we are hearing that the only locum workers in entire the entire workforce who have so far been deemed to be found outside of IR35 are emergency staff such as out of hours GPs, whom the Trusts are required to employ and whom the NHS is extremely reliant on. This is extremely disappointing, and leaves us with no choice but to proceed to judicial review.”

,

OCTOBER 2017 Page 11

Leading Cross-Border M&A Lawyer Amy Comer Joins Crowell & Moring’s London Office

g

Leading Cross-Border M&A Lawyer Amy Comer Joins Crowell & Moring’s London Office New partner will advise clients on cross-border investment and financial matters, with a primary focus in emerging markets.

Crowell & Moring LLP is delighted to announce the addition of Amy B. Comer as a partner in the firm’s Corporate Group in London. Comer is an internationally recognized practitioner who has nearly 20 years of experience handling international corporate, commercial, and technology transactions, with a primary focus in emerging markets.

She will advise clients on cross-border and U.S. domestic investment and financial matters, including mergers and acquisitions, joint ventures and strategic partnerships, restructurings, corporate and project finance transactions, and general corporate and commercial matters.

to advise clients on complex cross-border joint ventures and investments in emerging markets across EMEA and Asia. We are pleased to welcome her to the firm.”

“Amy’s reputation for deftly handling sophisticated transactions in emerging international markets is well known, particularly in the energy and healthcare sectors,” said Morris F. DeFeo Comer’s global and U.S. Jr., co-chair of the firm’s clients span multiple industries, Corporate Group. “She is including technology, media, highly regarded by clients telecommunications, energy, who rely on her counsel life sciences, insurance, and to offer exceptional value financial services. In the from a business and legal energy sector, she negotiates perspective. Her addition and drafts wholesale provides an important power purchase and tolling capability to our Corporate agreements, natural gas sales Group.” and purchase agreements, and energy hedging (derivative) Jack Thomas, managing agreements. Additionally, partner of the firm’s London she counsels media clients office, said of Comer: “Amy’s on copyright, trademark, and presence solidifies our licensing issues related to corporate depth in London, the distribution and licensing adding to our already notable of films, television programs, office capabilities in insurance, and music. She also advises sanctions, and arbitration.”

“Amy is an established mergers clients in the technology and acquisitions lawyer on and telecommunications Comer joins the firm from both sides of the Atlantic,” industry on software licenses, Morgan Lewis, where she was said Angela Styles, chair of technology development instrumental in building its Crowell & Moring. “Her addition agreements, privacy policies, corporate practice in London. enhances the firm’s capabilities and website terms of use.

She has been recognized in

WORLDWIDE LAW REVIEW

recent years by Legal 500 UK and Chambers Global.

“I’m excited to join Crowell & Moring’s distinguished group of lawyers,” Comer said. “I am eager to help grow the firm’s corporate presence in London and expand our work in emerging markets.”

Comer earned her J.D. from Tulane University Law School and her B.A. from Utah State University. She is admitted to practice in England & Wales and in New York.

Crowell & Moring’s Corporate Group, which she will be joining, is an interdisciplinary team of corporate and regulatory lawyers that offers a full-service corporate practice with an emphasis on M&A, joint ventures and strategic partnerships, corporate securities and finance and complex outsourcing, IP, and commercial arrangements.

The group works with large international and domestic

,

public companies, mid-sized and emerging businesses, privately held firms, private equity sponsors and hedge funds, investment firms, and high net-worth individuals across a wide range of industries. It is adept at operating in industries such as healthcare, defense and other government contracts, financial services, manufacturing, automotive, retail/consumer goods, energy, life sciences, and high tech.

Overall, Crowell & Moring LLP is an international law firm with approximately 500 lawyers representing clients in litigation and arbitration, regulatory, and transactional matters. The firm is internationally recognized for its representation of Fortune 500 companies in high-stakes litigation, as well as its ongoing commitment to pro bono service and diversity. The firm has offices in Washington, D.C., New York, Los Angeles, San Francisco, Orange County, London, and Brussels.

OCTOBER 2017 Page 13

Acc Sees Private Credit Market Reaching $1 Trillion By 2020

g

Acc Sees Private Credit Market Reaching $1 Trillion By 2020 The size of the global private credit market is on course to break the $1 trillion mark by 2020, according to research by the Alternative Credit Council (ACC), the private credit affiliate of the Alternative Investment Management Association (AIMA).

Dechert, the global law firm, contributed to and sponsored this year’s survey, titled Financing the Economy 2017.

The industry, which manages approximately $600bn in asset, has grown 14-fold since 2000.

Based on its current growth rate, the sector will reach $1 trillion in assets by the end of the decade, the ACC forecasts.

The “Financing the Economy” report highlighted that smallto-medium-sized businesses remain a dominant feature of the lending market. Around a third (34%) of total committed capital is now being lent to SMEs and the mid-market.

Large businesses receive around a fifth (22%) of all lending.

AIMA’s CEO Jack Inglis said: “Private credit has become a permanent feature of the lending landscape and we forecast that the industry will break the $1 trillion ceiling by the end of the decade.

Performance across the industry continues to be strong

relative to many other asset classes. This has attracted fundraising, as investors hope to capture continued outperformance in the future.

The industry continues to deliver flexible deals suited to borrowers’ needs and the success of the sector to date is fuelling its expansion into new markets.”

of all private credit managers citing these factors as their most resource intensive activity. At the same time, the preference of private credit managers for senior secure positions within the capital structure means that they are well placed to protect the interests of their investors, says the report.

The survey suggests that private credit managers are having to demonstrate more flexibility as both covenant and coupon terms have shifted more favourably towards the borrower. Nearly half of private credit managers stated that covenants had become less demanding over the past three years with only 14% saying loan terms had become more demanding.

Dry powder – also known as available capital - is approximately one-third of the industry’s total assets. This is the lowest level it has been for several years and was also considerably higher during the 2000-2008 period, when it was frequently close to 50% of total assets.

The flexibility shown by private credit managers with respect to loan covenants is matched by their focus on lending standards and commitment to robust risk analysis, with 85%

According to the survey, most private credit activity continues to take place in the US. However, the popularity of the US market is also helping to fuel interest in other markets, as managers look for new growth opportunities. Beyond the key markets of the US and

WORLDWIDE LAW REVIEW

the UK, managers nominated Germany, France and Canada as countries with significant opportunities for lending growth. Meanwhile, regulatory reforms in Europe and AsiaPacific are supporting the sector as it expands into new markets.

The research suggests that private credit managers are still very much adopting a “wait and see” approach regarding how best to position themselves in a Brexit environment, with 38% of private credit managers uncertain whether it would make the UK a more or less attractive place for financing.

More than two-fifths (45%) of managers say they target loans between $25 million and $100 million in size, with around one-in-five targeting loans in excess of $100 million. Deals are also becoming longer-term investments, with nearly twothirds (63%) of private credit

,

managers preferring terms of 2-6 years and almost a quarter of them (24%) favouring terms of six years or greater, up from only 8% in 2015.

Stuart Fiertz, Chair of the Alternative Credit Council and co-Founder of Cheyne Capital, said: “As private credit funding continues to have a positive impact on the real economy, the growth of the industry demonstrates how this type of financing is becoming increasingly integral to funding ecosystems globally. For investors too, alternative credit has become an asset class in its own right that provides portfolio diversification and a decorrelated driver of absolute returns. As the industry looks set to maintain this momentum in 2018, the ACC continues to work in support of private credit to ensure it remains a valuable funding mechanism that uses a diligent approach to make quality loans that finance the economy and satisfy investor requirements.”

Gus Black, Partner at Dechert LLP, said: “Private credit funds are increasingly being structured with the borrower in mind – private credit managers are willing to offer greater flexibility and favourable payment options.

Growth in alternative credit is good news for borrowers as it presents new and creative ways for them to expand their businesses.”

OCTOBER 2017 Page 15

Democracy: A Victim Of Its Own Success?

g

Democracy: A Victim Of Its Own Success?

Following Angela Merkel’s surprisingly small margin of victory in the German election, Guy Stephens, technical investment director at Rowan Dartington, discusses the future for Europe.

Angela Merkel’s Christian Democrat Union (CDU) has secured another four years in government. This was not a surprise in itself, but the margin of victory was much smaller than expected. The big winner was far-right Alternative for Germany (AfD), which gained its first seats in the Bundestag, becoming the first far-right party to do so since the fall of the Nazis.

Unlike the United Kingdom, Germany is a country used to coalitions, with Angela Merkel’s CDU having worked with the Social Democratic SDP for the previous four years. However, the SDP’s vote has fallen significantly, leaving it reluctant to form a coalition with Angela Merkel’s party.

The most likely outcome is a coalition of ‘Jamaica’, which comprises of the CDU, the Green Party and the Free Market Free Democrat (FDP) party – so called because their respective party colours make up the flag of Jamaica.

The CDU will still form the largest party, hence Angela Merkel will have another four years at the helm. This should ensure continued stability, but the Bundestag will undoubtedly be more fragmented. Of course, there will be those thankful that the far right AfD won’t be part of the coalition. However, the fact that it has entered the Bundestag at all does illustrate the concern that some people within Germany have towards Angela Merkel’s open-door immigration policy.

The difficulty the Tory party has is the Tory party itself: it is more fragmented now than the German Bundestag. The varied opinions on what Brexit should look like when we do leave and whether it should be a ‘soft exit’ or ‘hard exit’ make it very difficult to negotiate.

This is especially difficult when you don’t know the parameters on which you should be negotiating.

While Teresa May didn’t provide the EU with a set figure, she did say that the UK would honour any financial The German election commitments that were made conveniently occurred just after while it was a member of the Theresa May made a landmark EU. She also suggested a speech on Brexit in Florence, transitional period after March Italy. Even before the speech, 2019, our formal exit, which we saw this as welcome is widely believed to be two news; the apparent stalemate years. This would mean a between David Davis and further two years of the UK Michel Barnier was becoming observing EU laws, such as increasingly frustrating, even the free movement of people. for an observer.

The speech was generally well The main sticking point is received by the markets on Britain’s reluctance to state Friday, with the FTSE climbing how much we are willing to 40 points when Theresa May contribute to the EU upon took to the podium. While departure, with the EU the outcome of Brexit is far reluctant to discuss anything from certain, it does provide else, like free trade, until a businesses with reassurance figure has been agreed upon. that everything will not come to

WORLDWIDE LAW REVIEW

an abrupt halt in March 2019.

It was also generally well received by the EU. However, we do not necessarily think enough has been done for the EU to accept that sufficient progress has been made to start formal trade talks.

With the combination of the German Election result and Theresa May’s speech, we expect the markets to gain further ground in the coming weeks. Germany remains the powerhouse of Europe. Now Angela Merkel has secured a victory, albeit not as strong as she would have hoped, her focus can turn to Europe and securing an outcome that works for Germany, the EU and also for Britain. It is certainly not in Germany’s interest to seek punitive actions against the UK. On the contrary, it will be very interested in tariff free car exports and can now start to apply pressure for a deal.

Overall, we at Rowan Dartington believe the outcome of the German election will not necessarily strengthen our hand, but it will be broadly positive for all parties in the Brexit process.

,

However, the fact that Angela Merkel has to cobble together a coalition has meant that sterling has made up even further ground after Mark Carney talked up the currency after the last monetary policy meeting.

In what was a very political weekend, we also had the Labour Party conference. The general gist is that they are still a default government, waiting for the incumbent to implode.

Donald Trump has also continued to trade insults with the North Korean leader, Kim Jong-un, as well as picking a fight with the National Football League. He must surely be the most confrontational President there has ever been.

OCTOBER 2017 Page 17

Telecoms And Tech Industry Lead The Way

g

Telecoms And Tech Industry Lead The Way Only 1 in 4 businesses currently ready for GDPR, but a further 44% expect to be ready in time for next May, with finance (£215m) and IT (£266m) departments see the most funding for GDPR investment.

New research from leading information security company Clearswift has shown that the education sector is rivaling technology for the top spot when it comes to GDPR preparedness. This research was conducted by technology research firm, Vanson Bourne, on behalf of Clearswift. Over 600 business decision makers and 1,200 employees from the UK, US, Germany and Australia were polled to map the attitudes of businesses and employees relating to cyber security.

The research surveyed 600 senior business decision makers and 1,200 employees across the UK, US, Germany and Australia. When asked whether firms currently have all of the necessary processes in place to be compliant the top five performing sectors included technology and telecommunications (32%), education (31%), IT (29%), business services (29%) and finance (29%).

The survey has also revealed, of all the sectors, healthcare is the least likely to be ready for the upcoming GDPR, with

only 17% of private and public sector bodies claiming to have the processes in place to comply with the legislation.

Following closely behind is the retail sector with a mere 18% of the industry ready for GDPR, and marketing at 19% and legal at 21%.

Overall, the research has shown that only a quarter (26%) of businesses are currently ready for General Data Protection Regulation (GDPR). However with the deadline fast approaching, a further 44% are putting processes in place and expect to be ready in time for May next year, when the legislation comes into force.

Dr Guy Bunker, SVP of Products at Clearswift, said: “With 64% of UK businesses currently making moves towards GDPR compliance, the outlook is not as bleak as previously thought.

“It is clear that the regulation has grabbed the attention of businesses, but what is important is that their focus is in the right place.

Those viewing GDPR as an opportunity will be in the best

position to not only comply, but evolve their organisations, enhance their security posture and achieve business growth.

“Educating employees about how to safeguard critical information, introducing data protection guidelines and instilling a culture of data consciousness in the workplace will not only bring organisations closer to compliance but help reduce the chances of a data breach.”

Although the majority of businesses may not currently be ready for GDPR, employers have begun to identifying the departments within their organisations where data protection is needed most. The most common departments to have budget allocated for spend on GDPR are finance and IT (31%). This is particularly relevant as most businesses believe their critical data predominantly lies in the finance department (55%), suggesting that finance will be under the spotlight in the coming months as organisations look at how they can prepare for GDPR. When looking at the size of an organisation, 46% of the

WORLDWIDE LAW REVIEW

businesses that reported they are ready for GDPR had between 500 – 999 employees. Compared with larger corporations of 5000 or more employees, only 19% reported they are ready, suggesting that bigger is not necessarily better. Smaller enterprises are leading the way over their larger counterparts in putting processes and technology in place ahead of May 2018.

While many organisations are expecting to be ready for GDPR, our research has shown that a typical companywide IT project takes around six months to roll-out, meaning those that aren’t ready now are running out of time to introduce new technology which could help them comply with the legislation.

Dr Bunker added: “The key focuses for GDPR compliance are educating employees and understanding where your data lies. However, organisations that are still looking at how they can prepare should focus on security solutions that can be integrated within existing infrastructures, such as Data Loss Prevention (DLP)

,

tools and content inspection software, which are the biggest priorities in preventing data loss and can be used to demonstrate compliance with GDPR legislation. This can save time and costs by adding these to existing security investments instead of the removing old technology and replacing it with completely new solutions.�

OCTOBER 2017 Page 19

Employers Failing To Tackle Employee Knowledge Gap

g

Employers Failing To Tackle Employee Knowledge Gap A third (33%) of UK employees are saving less than £50 a month, with one in five (20%) not saving anything at all, with only two fifths (40%) of employees are confident in choosing the right savings product. Despite this, whilst 65% of employers recognise that they have a key role to play in improving employees’ financial wellbeing, three quarters (75%) of employees say that their employer has not provided any financial education to help them understand what savings choices exist A lack of across the board financial education is failing to close the employee savings gap, according to a new report published today by Close Brothers in conjunction with the Pension and Lifetime Savings Association (PLSA).

The Lifetime Savings Challenge Report 2017, which seeks to understand how employees are saving, where they need help, and the level of support available, reveals that there is a distinct savings challenge that needs to be addressed. A third (33%) of UK employees are saving less than £50 a month, which includes one in five (20%) who admit to not saving anything at all.

A lack of understanding amongst employees is clear.

This is a real concern against

a backdrop of radical change in the pensions and savings industry, as well as rock bottom interest rates. A lack of confidence when it comes to saving effectively into the right products for each individuals’ circumstances is also evident, with only two fifths (40%) of employees confident in their ability to choose the right financial product to help them achieve their savings ambitions. For example, while more than half (53%) of those aged 18-34 see either saving for retirement or buying a house as their main savings priorities, of those eligible to save via a Lifetime ISA (LISA), 42% don’t do so because they feel that they don’t know enough about the product.

In spite of the fact that around two thirds of employers (65%) think the responsibility for improving employees’ financial wellbeing lies jointly with

them and their employees, employers are falling short.

Just half of UK employers (48%) offer some form of financial education, with 20% planning to introduce it in the next twelve months.

Jeanette Makings, Head of Financial Education at Close Brothers said: “There is a looming savings crisis. Not only are people failing to save enough, but many simply don’t understand the different savings choices available or Despite this, three quarters how to evaluate which ones are (75%) of employees say that best for them. Worse than that, their employer has failed to the industry is not geared up to provide any financial education help them. Product providers to help them understand what can explain their own products, savings choices exist and and comparison websites may what’s best for them. It is clear be helpful to compare products that there is a real need to of the same type, but there examine the quality and scope are very few providers able to of the financial education that help individuals look across is provided, as well as to look the savings landscape in its to see what more can be done. entirety and choose what’s best for them.

When it’s available in the right format, it works. More than “Employers have a key a third (35%) of employees role to play in solving this who had received financial Lifetime Savings Challenge, education said that it had but despite them seeing it as been useful in guiding their their responsibility to enhance immediate, medium, and long- the financial education of term saving decisions. their workforce, far too few

WORLDWIDE LAW REVIEW

, are adequately addressing the issue amongst their employees. If we want employers to be adding real value, their efforts need to reflect the challenges that individual employees are facing at each stage of life.

“A huge part of the challenge therefore, is to encourage the provision of good financial education in the workplace that looks at savings as a whole and the different options available. Employers are hugely trusted and perfectly placed to close this knowledge gap. By working closely with them to develop impactful education, we can help employees secure a solid financial future for both themselves and their families.”

Nigel Peaple, Deputy Director of DC, Lifetime Savings and Research at the PLSA discusses the findings.

“Regular income from full-time employment is the building block for many people’s financial stability so it makes sense that they would also look to their employers for support with financial education, pensions and lifetime saving. Today’s report highlights not only the low levels of saving amongst the workforce but also their interest and desire to do more.

“It also raises important questions about the role employers can play in helping employees to be financially prepared for retirement. It is encouraging to see that almost two thirds of employers believe that it is their responsibility to help employees to make the most of the benefits packages they offer. We hope that companies will feel able to help their employees reach their savings aspirations.”

OCTOBER 2017 Page 21

Five Year Anniversary of Auto-Enrolment: Where Are We Now?

g

Five Year Anniversary of Auto-Enrolment: Where Are We Now? Auto-enrolment five years on: minimum contributions provide £2,400 boost to pension pots, becoming £11,400 over the next five years.

This month marks five years since auto-enrolment launched in the UK, with a minimum workplace pension contribution of 2% of income. During this half decade, more than 8 million people have been autoenrolled into a workplace scheme1, and according to new analysis from Aegon, for the first wave of employers taking part in the programme, those 2% minimum contributions will have already generated a pension pot of £2,440. As minimum contributions rise to 5% in April 2018, and 8% in April 2019, those choosing to remain enrolled for the next five years will have built a pot of £11,430.

Auto-enrolment was introduced by the government in October 2012 to reverse the decline in the number of pension savers, using inertia to get more people saving in a workplace pension. As soon as someone meets the eligibility conditions, they are automatically enrolled into a workplace pension and start

saving a proportion of their salary, as well as receiving an employer contribution. While one can chose to opt-out, this would mean surrendering the employer contribution.

Aegon’s analysis finds that someone on an average income of £26,500 (2017/18), who was autoenrolled in October 2012, paying the minimum 2% of their income as pension contributions, and receiving the average investment returns experienced over the last five years, would now have a fund of £2,440. This total comprises £786 from employee contributions, £983 from employer contributions, £197 from government tax relief, and £474 accrued through investment returns.

Over the coming five years, as minimum contribution levels rise to 5% in April 2018, and then 8% in April 2019, the same individual would build up a fund of £11,430 by 2022, assuming a 4.25% investment growth. (Please note that all figures are approximate and

not guaranteed). This is an increase of more than fourfold and shows the benefits of the increased contributions and assumed year on year investment growth. Of that sum, £4,600 would be from their income, meaning that the extra £6,830 has been added from a combination of employer contributions, tax relief and investment growth.

Building up £11,430 over ten years is a strong start, especially when many people will work four or five times longer. However, the hope is that people, and their employers, will choose to contribute more. An average earner saving the minimum 2% since 2012, but upping their combined contribution to 10% from this month, would boost their pot to £15,420 over the next five years, and more than double to £33,480 over ten years.

Kate Smith, Head of Pensions at Aegon, was keen to comment on the findings and how this is impacting on both firms and their staff.

WORLDWIDE LAW REVIEW

“Five years on, it is hugely encouraging to see that auto-enrolment is having the desired effect, improving the financial preparedness of workers right across the UK. However, it’s important people don’t become complacent and think that they’re home and dry by simply paying the minimum contributions. Clearly, having some savings is better than having none, so those that have contributed 2% of ‘band earnings’ over the last few years are on the right track.

But contribution levels do need to increase significantly if people are going to have enough to carry them through retirement comfortably.

“The good news is that minimum contribution levels are set to rise from next April, so people will soon be saving more unless they choose to opt out. But people need to think very carefully before deciding to give on pension savings and lose their employer’s contribution.

People in the UK are living longer, and social care costs are now are falling at the feet

,

of more and more retirees. It’s essential that people plan for these sorts of eventualities, and as these figures show, just contributing a little bit more really pays off in the long run.

An adviser can help arrive at the right contribution to meet retirement aspirations. �

OCTOBER 2017 Page 23

Middle-Market TMT Sector Sees Upsurge In Confidence Ahead Of Brexit

g

Middle-Market TMT Sector Sees Upsurge In Confidence Ahead Of Brexit The technology, media and telecommunications (TMT) sector saw an upsurge in long term confidence ahead of Brexit, placing it as the most optimistic amongst other sectors According to the latest YouGov survey, the Brexit Monitor, commissioned by leading audit, tax and consulting firm RSM, TMT leaders also remain optimistic about the prospects of negotiating a good Brexit deal. This bullishness appears to contradict recent fears about a ‘no deal’ outcome, and is revealed on the eve of this week’s EU Summit in Brussels, and during the apparent deadlock over the UK’s Brexit bill.

RSM’s quarterly Brexit Monitor index, in which any reading above 100 means more businesses are confident than pessimistic, saw the TMT sector illustrate an upsurge in confidence on their own longer term business prospects. The sector rose from the least optimistic average index score of 101 in July to the most upbeat sector of all at 126 compared to manufacturing, financial services, construction and consumer.

TMT’s short term sentiment also stood out as the most consistently upbeat, presenting an average score of 128, replacing Manufacturing which dropped to the second most optimistic sector with 113.

In contrast, the consumer sector saw the most challenging conditions ahead for their industry, with an index score of just 94.

The quarterly survey of more than 300 UK leaders of midmarket companies, of which 51 were made up by those operating within TMT, revealed that 40 per cent of TMT respondents were confident that the government could achieve a good deal. This was almost double the 21 per cent who said they remained unconfident.

Assuring the rights of EU citizens in the UK was the most important negotiation priority within the TMT sector at 43 per cent, followed by retaining free movement of people (39 per cent) and access to the single market without membership (31 per cent).

The three standout actions taken by TMT leaders were that immigration and employment legislation in anticipation for hiring EU nationals had been reviewed (42 per cent), EU supplier contracts had been reviewed or adjusted (41 per cent) and contracts for potential import/ export duties with the EU had been adjusted (40 per cent).

The top three actions that TMT respondents still feel need to be taken were establishing EU subsidiaries or branches (29 per cent), reviewing or adjusting EU supplier contracts (25 per cent) and adjusting EU customer contracts (24 per cent).

David Blacher, partner and national head of TMT at RSM said: ‘Whilst the TMT sector is not impervious to political and economic volatility, these latest survey results are yet another illustration of a sector that continues to grow in confidence. Whilst the implications of Brexit present a major factor for decisionmakers, there is a sustainable

WORLDWIDE LAW REVIEW

belief that the strength of this revolution in technology, coupled with the sectors adaptability, unlike perhaps more traditional sectors, will offset any frictional losses over both the short and long term.

‘Despite the political challenges, as well as the TMT sectors aptitude to be agile to change, it would seem that the sector also remains relatively confident about the Government’s ability to deliver a good deal.’

Thinking about the sort of trade deal that all the mid-market firms surveyed would like to see with the EU once the UK has left, 22 per cent favoured the Canadian and Norwegian models respectively, 19 per cent the City State model and 17 per cent the Swiss model.

Only 6 per cent preferred the Turkish model.

,

OCTOBER 2017 Page 25

Former First Assistant Attorney General of New Jersey, Joins International Law Firm

g

Former First Assistant Attorney General of New Jersey, Joins International Law Firm Arrival of state’s #2 law enforcement officer and former SDNY prosecutor, enhances firm’s government enforcement capabilities in New York and New Jersey.

On the 18th October, international law firm, Crowell & Moring LLP is pleased to announce that Rebecca Monck Ricigliano, a former First Assistant Attorney General of New Jersey and federal prosecutor, has joined the firm’s New York office as a partner in its White Collar & Regulatory Enforcement Group. With more than a decade of law enforcement and government enforcement experience, Ricigliano will focus her practice on government investigations, independent monitorships, and trial advocacy on behalf of corporate and individual clients.

“Rebecca’s experience as a state and federal prosecutor broadens the scope of our established white collar capabilities in New York and New Jersey, and nationally,” said Glen G. McGorty, managing partner of the firm’s New York office. “She will be an asset to clients across a

spectrum of industries, from Narcotics Unit and Senior healthcare and pharmaceutical Trial Counsel in the Public to financial institutions.”

Corruption Unit. She oversaw hundreds of investigations As First Assistant Attorney and prosecutions, including General, the second-highest healthcare fraud, public ranking law enforcement corruption, and money officer in New Jersey, laundering; served as counsel Ricigliano supervised criminal in seven criminal trials; briefed investigations, False Claims more than a dozen appeals, Act and Consumer Fraud and argued repeatedly before Act litigation, defence civil the U.S. Court of Appeals for litigation, and helped establish the Second Circuit. She served policy initiatives on behalf in the SDNY’s Securities and of the Attorney General Commodities Fraud Task concerning the state’s opioid Force, investigating and crisis and cybersecurity. She prosecuting financial crimes, helped manage more than such as market manipulation, 7,200 employees and 14 insider trading, and other divisions of New Jersey’s securities fraud investigations, Department of Law and Public including serving as coSafety, including the Division counsel of an accounting of State Police, the Office fraud trial that resulted in the of Homeland Security and conviction of the former CEO Preparedness, the Division and CFO of drug store chain of Criminal Justice, and the Duane Reade. She also led Division of Consumer Affairs. the team that prosecuted members and associates Ricigliano served as an of Fuerzas Armadas Assistant United States Revolucionarias de Colombia, Attorney for the Southern a group designated by the District of New York from State Department as a foreign 2005 to 2014. In that time, terrorist organization. she was the Chief of the

WORLDWIDE LAW REVIEW

“Rebecca is a rock star who has earned the respect of her colleagues during her outstanding career as a prosecutor, and we are very fortunate that she has decided to join our white collar team at Crowell & Moring,” said Daniel L. Zelenko, chair of the firm’s White Collar and Regulatory Enforcement Group.

In Crowell & Moring’s New York office, Ricigliano joins leading white collar practitioners such as Kelly T. Currie, chair of the firm’s Investigations Practice and former Acting U.S. Attorney for the Eastern District of New York; McGorty, a former SDNY prosecutor; and Zelenko, a former senior enforcement lawyer at the Securities and Exchange Commission and Justice Department prosecutor. In July, Juan A. Arteaga, the former Deputy Assistant Attorney General for Civil Enforcement at DOJ’s Antitrust Division, joined the firm in New York as a partner in the Antitrust Group.

, “I chose Crowell & Moring for its unparalleled white collar experience across the United States and am eager to help grow the firm’s government enforcement capabilities across the TriState region and beyond,” Ricigliano said.

Ricigliano is the recipient of the Federal Drug Agents Foundation’s “True American Hero Award” and the Council of the Inspectors General on Integrity and Efficiency’s “Investigations Award for Excellence.”

She received her J.D. and B.A., cum laude, from the State University of New York at Buffalo. She was publications editor for the Buffalo Law Review.

OCTOBER 2017 Page 27

Blake Morgan Advises On Acquisition Of Deltenna Ltd

g

Blake Morgan Advises On Acquisition Of Deltenna Ltd Leading law firm Blake Morgan has advised Cubic Corporation on its acquisition of Deltenna Limited, a wireless infrastructure company specialising in the design and delivery of radio and antenna communication solutions.

Cubic Corporation designs, integrates and operates systems, products and services, such as combat training systems and surveillance, to the military, transportation and defence industries.

very well with Cubic’s culture of innovation and we are pleased to welcome them to our Cubic family

“This is an exciting acquisition that will strengthen our capability of developing and integrating products that will change the way our military The acquisition is part of Cubic forces communicate, train and Corporation’s corporate growth operate. strategy and the addition of Long Term Evolution and 4G “I would like to thank Mat and technology to their portfolio will the team at Blake Morgan for enable them to deliver the fast their pragmatic, commercially data rates needed to meet the astute and technically sound critical communications needs advice. Their desire to really of their customers. understand our business and support our growth strategy Corporate lawyer Mathew was second to none. We look Wilson (pictured) led the deal, forward to working with the supported by partner Stephen team again in the future.”

Archibald. This was a complex transaction and drew on Keith Taylor, Managing expertise from across the firm Director of Cubic Defence UK, including intellectual property, added: “Having experienced real estate, employment and the professionalism of Mat pensions.

Wilson and the team from Blake Morgan on previous Norman Bishop, Vice transactions, they were the President of Corporate obvious choice of legal advisor Development at Cubic on what is an important deal Corporation, said: “The for Cubic. I would like to addition of Deltenna aligns thank Mat and the team for

navigating us through what was a complex deal that required a range of legal specialisms from within the firm to ensure a successful completion.”

Blake Morgan associate Mathew Wilson, commented: “It has been a privilege to work on another important technology driven deal for Cubic. Whilst the acquisition of Vocality International was highly complex, the Deltenna transaction was strategically important for Cubic and also required our technical expertise from across the firm to secure a successful outcome for our client. I would like to wish both Cubic and the Deltenna team every success for the integrated business for the future.”

This latest deal is the second high-profile transaction on which Blake Morgan has completed recently for Cubic Corporation, having successfully advised on their acquisition of Vocality International - a leading provider of embedded technology that unifies communications platforms, enhances voice quality, increases video performance Blake Morgan has an and optimizes data throughput. international portfolio of multinational client companies The corporate team at Blake (public and private), SMEs, Morgan, who were recently owner managed businesses crowned Law Firm of the Year and start-ups with a need for at the Solent Deals Awards, high-quality corporate and have a wealth of experience of M&A support and advice advising on complex corporate transactions and have a long The corporate team is standing relationship with acknowledged within the Cubic Corporation providing legal industry and in the first class corporate advice independent legal directories, to their senior management for providing a first-class team. level of service across a wide range of transactions including

WORLDWIDE LAW REVIEW

, mergers, acquisitions, sales, private equity and joint ventures.

Blake Morgan is a Top 50 UK law firm providing a breadth of legal services across the private and public sectors with a strong regional presence across southern England and Wales. The firm has six offices: Cardiff, London, Oxford, Portsmouth, Reading and Southampton.

With a long heritage and committed client base, the firm’s partners and teams provide a depth of expertise in their key sectors. The firm has ambitious plans for growth to deliver more developed and broader services to its clients both in the south of England and Wales and more widely across the UK. The firm aims to deliver exemplary service to its clients and to make a difference through teamwork, integrity and innovation.

OCTOBER 2017 Page 29

INVEST IN TUNISIA For more information and full free support, please visit or contact Jalel Tebib, Director of the Foreign Investment Promotion Agency based in London on fipa.london@investintunisia.org.uk

www.investintunisia.tn

WORLDWIDE LAW REVIEW 2017

With an international reach of 70,000 Worldwide Law Review offers the ideal platform for those seeking to reach the very best lawyers, litigators, IP professionals and legal experts from around the world.

Subscribe Now ,

www.worldwidelawreview.com/subscribe