Insights

With the upcoming March 1st effective date for the global variation margin rules for uncleared swaps quickly approaching, US and EU regulators issued guidance on February 23, 2017 that may have the effect of easing requirements for certain market participants in complying with the March 1st deadline. The move by the agencies is in response…

Client Alerts | February 28, 2017 | Derivatives | Hedge Funds

Fund managers may be required to file Treasury International Capital (“TIC”) Form SHC, Report of U.S. Ownership of Foreign Securities, Including Selected Money Market Instruments for 2016 by March 3, 2017, based on the fair value of foreign assets determined as of December 31, 2016. Form SHC is a Treasury form which seeks to gather…

Client Alerts | February 22, 2017 | Hedge Funds

A Section 475(f) election might be beneficial for a fund experiencing losses in 2017 or possibly where a fund has significant net unrealized losses coming into 2017. Not as well known is that a section 475(f) election might also be beneficial where a fund is experiencing gains or has significant unrealized net gains coming into…

Client Alerts | February 16, 2017 | Hedge Funds

On February 13th, consistent with the requests from a number of market participants and trade organizations, including SIFMA and ISDA, a division of the U.S. Commodity Futures Trading Commission (CFTC) indicated that it would delay enforcement of the variation margin rules for uncleared swaps that are due to go into effect for swaps with financial…

Client Alerts | February 15, 2017 | Derivatives | Hedge Funds

On January 12th, the Office of Compliance Inspections and Examinations (“OCIE“) of the Securities and Exchange Commission (the “SEC“) announced its 2017 examination priorities for registered investment advisers.[1] OCIE grouped the priorities into three general thematic areas: protecting retail investors, focusing on senior investors and retirement investments, and assessing market-wide risks. OCIE notes that the…

Client Alerts | February 1, 2017 | Hedge Funds

On December 20, 2016, New York’s highest court rendered a decision confirming what participants in financial markets have long believed to be true: that absent an express manifestation of the parties’ intent not to be bound, an agreement to buy or sell a financial instrument that includes all material terms but is “subject to” additional…

Client Alerts | January 12, 2017

On December 6, 2016, the U.S. Supreme Court issued a decision in the long-awaited case of Salman v. United States, the first substantive insider trading case to be taken up by the high court in nearly two decades. Although the Supreme Court has spoken, the uncertainty resulting from the 2014 decision of the U.S. Court…

Client Alerts | December 8, 2016 | Hedge Funds

This newsletter briefly highlights certain tax issues and planning that hedge fund managers should consider (or reconsider) before year-end. 1. Trump Presidency. With the election of Donald Trump as President, year-end tax planning is “business as usual” – that is, generally accelerating deductions and deferring income since rates are not expected to increase in 2017.…

Client Alerts | November 21, 2016 | Hedge Funds

In General Section 871(m) of the U.S. Internal Revenue Code of 1986, as amended, was enacted in 2010 and imposes a 30% U.S. withholding tax (subject to reduction by an applicable tax treaty) on dividend equivalent amounts paid (or deemed paid) on certain swaps and equity linked instruments referencing U.S. equities if the long party…

Client Alerts | November 18, 2016 | Derivatives | Hedge Funds

On October 24, 2016, the staff in the Office of Compliance Inspections and Examinations (the “Staff“) of the U.S. Securities and Exchange Commission (the “SEC“) issued a risk alert announcing that it is examining registered investment advisers (“RIAs“) and registered broker-dealers for compliance with Rule 21F-17 under the Securities Exchange Act of 1934, as amended…

Client Alerts | November 9, 2016 | Hedge Funds