Insights

On September 16, 2014, the Securities and Exchange Commission (“SEC”) announced that it charged 19 firms and an individual trader with violations of Rule 105 of Regulation M under the Securities Exchange Act of 1934 (“Rule 105”). This round of sanctions follows the largest Rule 105 sanction ($7.2 million) announced in March of this year…

Client Alerts | September 30, 2014 | Hedge Funds

The International Swaps and Derivatives Association (“ISDA”), the trade group for the over- the-counter derivatives industry, has issued the 2014 Credit Derivatives Definitions (the “2014 Definitions”) which are expected to govern credit derivative trades starting on September 22, 2014. The 2014 Definitions reflect numerous changes to the 2003 Credit Derivative Definitions (the “2003 Definitions”) which…

Client Alerts | September 8, 2014 | Derivatives | Securities and Corporate Finance | Hedge Funds

OVERVIEW We have previously issued newsletters discussing FATCA generally, preparation for compliance, and developments in the timeline for implementing FATCA. On June 25, 2014, the IRS released final instructions to new Form W-8BEN-E. This follows last week’s release of final instructions to Form W-8IMY. The FATCA world has been waiting for these instructions. FATCA GENERALLY…

Client Alerts | June 27, 2014 | Hedge Funds

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