Latest updates

Will Brexit and possible NAFTA termination affect Mexican insurers?
Hogan Lovells BSTL SC
  • Insurance
  • Mexico
  • June 05 2018

There has been much speculation around the implications of Brexit and the possible termination of the North American Free Trade Agreement (NAFTA). One of the clear benefits of both NAFTA and the free trade agreement entered into between Mexico and the European Union was the exemption of NAFTA and EU insurers from the foreign investment restriction. However, as this restriction was eliminated in 2014, affiliates of insurers located in NAFTA and EU member states will not be substantially affected.

Numerous cyberattacks breach Banxico's Interbank Electronic Payments System
Hogan Lovells BSTL SC
  • Banking
  • Mexico
  • June 01 2018

The funds of some participants of the Interbank Electronic Payments System (SPEI) were recently affected by a series of unprecedented cyberattacks. The Mexican Central Bank revealed that approximately $15 million (Ps300 million) had been involved in diverse irregular transfers, subject to investigation. The cybercriminals had identified a flaw in the system that permitted receivers of SPEI transfers to withdraw cash almost immediately after receiving the transfer so that the money could not be traced.

Compliance and privilege – an overview
Hogan Lovells US LLP
  • White Collar Crime
  • USA
  • May 28 2018

Compliance officers often report to the legal department or are staffed with qualified lawyers, making it difficult to distinguish when the compliance officer is serving in a legal capacity, rather than a compliance one. However, drawing a clear distinction between these functions, conducting internal investigations under the direction of counsel and making the legal purpose of communications or documents clear will make the best possible record to show that documents should be protected by privilege.

Supreme Court upholds first class action relating to medical devices
Hogan Lovells Studio Legale
  • Healthcare & Life Sciences
  • Italy
  • May 16 2018

After seven years, the Supreme Court finally ended the first product-related class action promoted in Italy relating to a medical device. The decision is noteworthy, despite the small sum awarded, because very few class actions have been declared admissible to date and even fewer cases have been upheld on the merits due to strict admissibility requirements.

New guidelines concerning recovery of expired water concessions for exploitation of national waters
Hogan Lovells BSTL SC
  • Environment & Climate Change
  • Mexico
  • April 30 2018

The Ministry of Environment and Natural Resources recently published a decree granting administrative benefits for the issuance of new concession titles for exploiting national waters to persons that hold a title which expired after January 1 2004. Notably, the decree allows for the issuance of new concession titles even if the zone or specific aquifer from which the original concession title was authorised to extract water is now considered a restricted or banned zone or aquifer.

Functional separation of Telmex leaves some sceptical
Hogan Lovells BSTL SC
  • Telecoms
  • Mexico
  • April 25 2018

The Federal Institute of Telecommunications recently approved the final programme for the functional separation of Mexico's fixed incumbent companies as a consequence of the asymmetric regulation imposed on the América Movil Group (AMX). However, AMX has informed the Mexican Stock Exchange that it will challenge the approval of the programme and there has been some scepticism as to the results and practical consequences of the separation.

Congress approves Financial Technology Institutions Law
Hogan Lovells BSTL SC
  • Banking
  • Mexico
  • April 06 2018

The president recently enacted the Financial Technology Institutions Law. The Senate had unanimously approved the bill on the law in December 2017 and sent it to Congress, which made no changes. The law seeks to build a regulatory framework that will encourage the development of innovative financial services, increase the level of competition and financial inclusion and place Mexico at the forefront of the industry.

IFT announces 2.5 GHz auction
Hogan Lovells BSTL SC
  • Telecoms
  • Mexico
  • April 04 2018

The Federal Institute of Telecommunications recently announced the auction of the 2.5 GHz band. The auction's purpose is to assign the commercial use and exploitation of 120 MHz of the 2,500 to 2,690 MHz band for the provision of wireless services. Four companies and one consortium are interested in formally participating in the auction process, which is expected to be completed by November 2018.

New administration, same policy? Only time will tell
Hogan Lovells US LLP
  • White Collar Crime
  • USA
  • March 19 2018

With few Foreign Corrupt Practices Act (FCPA) corruption investigations resolved under the Trump administration's watch, it is too early to weigh up how the administration will affect enforcement or settlements in the long term. On its face, the new FCPA Corporate Enforcement Policy signals a more business-friendly approach by removing the spectre of a monitor in many situations and by committing to a presumption of a declination in certain circumstances.

Insurance regulator updates rules for surety insurance contracts
Hogan Lovells BSTL SC
  • Insurance
  • Mexico
  • March 06 2018

The National Insurance and Bonds Commission recently added two new articles to the Insurance and Bonding Sole Provisions which set out new surety insurance contract requirements. Contracts must now include, among other things, confirmation that the insurer is authorised to pay the indemnity for damages without prior notice or consent of the policyholder and that the indemnity may be paid as compensation or as a penalty for the damages suffered.

Draft amendments to official standard apply to wastewater discharges into national waters
Hogan Lovells BSTL SC
  • Environment & Climate Change
  • Mexico
  • March 05 2018

The National Waters Commission recently submitted to the Federal Regulatory Betterment Commission its draft revision of the Mexican official standard which establishes the maximum permissible levels of pollutants in wastewaters discharged into national waters or properties. The draft aims to modernise the standard by including additional terms and definitions, pollutants and parameters regarding wastewater discharges into federal waters, as well as new sampling and reporting frequency obligations.

Recent court precedents concerning financial transactions
Hogan Lovells BSTL SC
  • Banking
  • Mexico
  • February 02 2018

There were a number of court precedents in 2017 concerning financial transactions. For example, a recent non-binding collegiate court precedent broadened the scope and source of information that judges should use to analyse and determine the existence of usury, while another validated judges' authority to use the annual interest rate published by companies that engage in vehicle financing. Further, a binding Supreme Court precedent dealt with the maturity date of promissory notes.

Seven reasons to pay attention to new Foreign Corrupt Practices Act Corporate Enforcement Policy
Hogan Lovells US LLP
  • White Collar Crime
  • USA
  • January 29 2018

Companies now have even greater incentives to have strong, meaningful Foreign Corrupt Practices Act compliance programmes. When the deputy attorney general recently announced the new enforcement policy that will guide the US Department of Justice, he made it clear that the government wants to create incentives for companies to police themselves when it comes to bribery and corruption.

National Insurance and Bonds Commission modifies regulatory framework for electronic contracting
Hogan Lovells BSTL SC
  • Insurance
  • Mexico
  • January 02 2018

In order to prevent the misuse of customer information, the National Insurance and Bonds Commission recently amended the Insurance and Bonding Sole Provisions with regard to information gathered electronically. Among other things, the amendments require insurers to implement security measures and mechanisms for the transfer, storage and processing of information generated electronically when contracting insurance and bonds and rendering other services to customers.

SHCP releases first draft of Financial Technology Institutions Law
Hogan Lovells BSTL SC
  • Banking
  • Mexico
  • December 08 2017

The Ministry of Finance and Public Credit recently circulated a substantially amended draft of the Financial Technology Bill, which has been renamed the Financial Technology Institutions (FTIs) Law. The law aims to regulate the financial services provided by FTIs – including those which are bound to specific regulations and offered or rendered through innovative means – as well as the organisation of such institutions and their operations.

Waste management rules for hydrocarbons sector to be enacted
Hogan Lovells BSTL SC
  • Environment & Climate Change
  • Mexico
  • November 13 2017

The National Agency for Industrial Safety and the Protection of the Environment in the Hydrocarbons Sector recently filed a draft emergency Mexican official standard before the Federal Regulatory Betterment Commission. The draft establishes the criteria for classifying types of special and hazardous waste derived from the hydrocarbons sector, determines which types of waste are subject to a waste management plan and details the procedures for formulating such a plan.

Insurance regulator issues temporary measure for insurers following recent earthquakes
Hogan Lovells BSTL SC
  • Insurance
  • Mexico
  • October 24 2017

The National Insurance and Bonds Commission has issued a temporary measure to enable insureds and their beneficiaries to be immediately compensated for damages suffered as a consequence of the recent earthquakes that affected several areas of Mexico. The temporary measure applies to Mexican insurers that have ceded risks to reinsurers and allows them to use funds to meet assumed risks and recover compensation from reinsurers at a later date.

National Banking and Securities Commission amends general rules for credit institutions to curb identity theft
Hogan Lovells BSTL SC
  • Banking
  • Mexico
  • October 06 2017

In recent years, Mexico has been rated as having one of the highest rates of credit card fraud in the world. The National Banking and Securities Commission recently published the Resolutions that Modify the General Rules Applicable to Credit Institutions, which require credit institutions to verify information and documentation filed by users and customers with different government bodies in order to assure the identity of each prospective customer.

DOJ announces one of largest False Claims Act recoveries concerning government small-business programmes
Hogan Lovells US LLP
  • White Collar Crime
  • USA
  • October 02 2017

Two recent cases before the Department of Justice (DOJ) have sent a signal that the DOJ may become more proactive in combating small-business contracting fraud. These cases underscore the importance of ensuring that small-business eligibility representations are accurate, as the penalties for misrepresentation can be severe.

Company fails to prove bad-faith registration of domain name identical to its trademark
  • Intellectual Property
  • International
  • September 25 2017

In a recent decision before the World Intellectual Property Organisation, a panel denied the transfer of a three-letter domain name, even though it identically reproduced a complainant's trademark, because the domain name had been registered years before the complainant acquired trademark rights and the complainant failed to demonstrate that the respondent was aware of those rights.