Insights

This legal update serves as our annual reminder of the requirement to file Reports of Foreign Bank and Financial Accounts (“FBAR”). For the calendar year 2013, FBARs are required to be filed on or before June 30, 2014. The form was formerly known as Form TD F 90-22.1 and is now known as FinCEN Report…

Client Alerts | June 12, 2014 | Hedge Funds

The New York County District Attorney’s Office recently announced the indictment of a former analyst with a New York City hedge fund alleging that the analyst illegally accessed and duplicated proprietary and highly confidential information relating to the firm’s trading methods. The analyst is charged with multiple counts of Unlawful Use of Secret Scientific Material,…

Client Alerts | April 1, 2014 | Hedge Funds

The IRS has just announced that the April 25th deadline for fund managers to register their offshore funds and offshore master funds with the IRS and obtain Global Intermediary Identification Numbers (“GIINs”) has been extended to May 5th. Obtaining a GIIN by May 5, 2014, will allow a fund to avoid withholding under FATCA. IRS…

Client Alerts | March 31, 2014 | Hedge Funds

Most hedge fund managers, understandably, have held off doing heavy lifting regarding FATCA in anticipation of guidance to be issued and forms to be finalized (and possibly holding out hope that FATCA would be delayed for another 6 months or even repealed). At this point, hedge fund managers that manage offshore funds need to take…

Client Alerts | February 28, 2014 | Hedge Funds

This annual newsletter briefly highlights certain tax issues and planning that hedge fund managers should consider (or reconsider) before year-end. Tax rates are scheduled to remain the same in 2014. FATCA compliance deadlines are beginning to approach (unless they are further delayed) and net investment income tax final regulations were just issued. Federal Income Tax…

Client Alerts | December 4, 2013 | Hedge Funds

The Loan Syndications & Trading Association (the “LSTA”) recently issued a market advisory with respect to the allocation of “ticking fees” between a buyer and seller under an LSTA Par/Near Par Trade Confirmation (“Par Confirm”). “Ticking fees” is an informal market term that is used to describe two different types of payments made from a…

Client Alerts | July 31, 2013 | Hedge Funds

On July 12, 2013 the Internal Revenue Service (the “IRS”) issued Notice 2013-43 (the “Notice”) extending the deadline for the implementation of the Foreign Account Tax Compliance Act (“FATCA”). In general, the FATCA deadlines have been extended by six months. With no final revised W-8 forms, intergovernmental agreements still in a state of flux and…

Client Alerts | July 11, 2013 | Hedge Funds

On July 10, 2013, the Securities and Exchange Commission issued long awaited amendments to Rule 506 under Regulation D, one of the most widely used exemptions for selling securities without registration under the Securities Act of 1933 (the “Securities Act”). These amendments are mandated by the JOBS Act, which was passed last year, and will…

Client Alerts | July 9, 2013 | Securities and Corporate Finance | Hedge Funds

On July 10, 2013, the Securities and Exchange Commission approved final rules that disqualify securities offerings from relying on the safe harbor provided by Rule 506 of Regulation D under the Securities Act of 1933 if certain felons or other bad actors are involved in the offering. The rules were required by Section 926 of…

Client Alerts | July 9, 2013 | Securities and Corporate Finance | Hedge Funds

Introduction This alert is a reminder to our clients of the Alternative Fund Manager’s Directive (“AIFMD”), which goes into effect as of July 21, 2013 for most European Union (“EU”) Member States, and its implications from the perspective of a US manager[1] that manages non-EU domiciled funds[2]. Managers who intend to “market” (see definition below)…

Client Alerts | May 31, 2013 | Hedge Funds