Insights

Amendments Would Provide Investors the Ability to Choose More Easily Between Candidates Offered by Activists and Candidates Offered by a Company On October 26, 2016, the Securities and Exchange Commission (“SEC”) proposed amendments to the proxy rules to facilitate voting in director elections by, among other things, requiring parties in a contested election to use…

Client Alerts | October 28, 2016 | Investor Activism | Hedge Funds

On August 25, 2016, the Securities and Exchange Commission (the “SEC“) adopted amendments to Form ADV and to certain rules promulgated under the Investment Advisers Act of 1940, as amended (the “Advisers Act“).[1] The effective date of these amendments is October 31, 2016, but the compliance date is not until October 1, 2017, and many…

Client Alerts | September 29, 2016 | Hedge Funds

On September 1, 2016, the Loan Syndication and Trading Association (the “LSTA“) implemented significant changes to the provisions in the trading documentation governing whether a buyer is entitled to receive delayed compensation for a par/near par trade (hereinafter, a “Par Trade“). Delayed compensation is a payment by seller to compensate buyer when a Par Trade…

Client Alerts | September 8, 2016 | Hedge Funds

On August 2, 2016, the IRS issued proposed regulations for Section 2704 of the Internal Revenue Code, which would substantially impact the ability of taxpayers to discount the value of certain assets in order to reduce gift and estate taxes. The regulations specifically target the use of Family Limited Partnerships (FLPs) and Family Limited Liability…

Client Alerts | August 31, 2016 | Estate Planning and Administration

On June 28, 2016, the Securities and Exchange Commission (the “SEC“) proposed a new rule (the “Proposed Rule“) that would require SEC-registered investment advisers (“RIAs”) to adopt and implement written business continuity and transition plans (“Continuity Plans“) reasonably designed to address operational and other risks related to a significant disruption in the RIA’s operations.[1] Additionally,…

Client Alerts | August 22, 2016 | Hedge Funds

In light of recent volatility in the markets and generally lackluster performance in the hedge fund industry, many investors have seen their hedge fund investments lose value. Consequently, raising new capital and retaining existing capital has become increasingly difficult for hedge fund sponsors. Not surprisingly, one of the most commonly asked questions of late by…

Client Alerts | August 2, 2016 | Hedge Funds

On July 13, 2016, the Securities and Exchange Commission adopted amendments updating the rules of practice governing its in-house administrative proceedings. Among the most significant new rules adopted by the SEC are: Timing of Hearing and Initial Decision The new rules make the deadline for a final decision run from the date that the hearing…

Client Alerts | July 20, 2016 | Hedge Funds

On Wednesday, June 29, 2016, the U.S. Federal Trade Commission (the “FTC”) announced that it approved final amendments to Commission Rule 1.98 to increase the maximum civil penalty dollar amounts for various legal violations as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. Among such violations, as of August 1,…

Client Alerts | July 7, 2016 | Securities and Corporate Finance | Investor Activism

On June 14, 2016, the SEC issued an order increasing the net worth prong of the “qualified client” test from $2.0 million to $2.1 million, reflecting an adjustment for inflation.[1] This change will become effective on August 15, 2016. Section 205(a)(1) of the Investment Advisers Act of 1940, as amended (the “Advisers Act”), and Rule…

Client Alerts | July 7, 2016 | Securities and Corporate Finance | Hedge Funds

The Securities and Exchange Commission and the Department of Justice recently have sought to persuade companies to self-report violations of the Foreign Corrupt Practices Act. The SEC has announced non-prosecution agreements with two companies, Akamai Technologies and Nortek Inc., respecting bribes paid to Chinese officials by Chinese subsidiaries. Each U.S. company was required to disgorge…

Client Alerts | June 16, 2016 | Securities and Corporate Finance