Insights

On July 20, 2018, the National Futures Association (“NFA”) issued new disclosure requirements for registered commodity pool operators (“CPOs”) and commodity trading advisors (“CTAs”) to address certain risks stemming from the recent growth of the virtual currency and virtual currency derivatives markets. The new requirements will require, among other things, CPOs and CTAs trading in…

Client Alerts | August 7, 2018 | Hedge Funds

On July 11, 2018, 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 (the “Risk Alert”)[1] describing many of the most common best execution-related deficiencies cited by the Staff in recent examinations of investment advisers. In addition, on July…

Client Alerts | August 7, 2018 | Hedge Funds

On June 21, 2018, the United States Court of Appeals for the Fifth Circuit issued a mandate that officially vacated the Department of Labor’s advice fiduciary rule, which generally had gone into effect for investments made on or after June 9, 2017. For discussion of the Fifth Circuit’s March 15th, 2018, decision to vacate the…

Client Alerts | July 27, 2018 | Hedge Funds

Traders in claims of bankruptcy debtors should take note of a recent Delaware Bankruptcy Court decision that prevents the transfer of claims when the underlying debt instrument prohibited the transfer without the borrower’s consent. In In re Woodbridge Group of Companies, LLC, et al. No. 17-12560 (KJC), (Bankr. Del. June 20, 2018) (http://www.deb.uscourts.gov/sites/default/files/opinions/judge-kevin-j-carey/woodbridge-contrarian-opinion-and-order.pdf), the court…

Client Alerts | July 23, 2018

A recent decision by the Ninth Circuit Court of Appeals, Pacific Western Bank v. Fagerdala USA – Lompoc, Inc. (In re Fagerdala USA – Lompoc, Inc.), strengthens the hand of creditors that seek to block confirmation of a cramdown plan by purchasing other claims, and may contribute to the liquidity of the market in bankruptcy debt.…

Client Alerts | July 9, 2018

On June 21, 2018, the U.S. Supreme Court handed down its decision in Lucia v. Securities and Exchange Commission, finding that the SEC’s system of appointing administrative law judges (ALJs) by the SEC staff, rather than by the SEC commissioners themselves, is unconstitutional.   The case resolved a split between the U.S. Courts of Appeals for the…

Client Alerts | June 27, 2018 | Hedge Funds

On June 5, 2018, the Board of the National Futures Association (NFA) approved the development of a proficiency requirements program for “associated persons” (APs) of registered commodity pool operators (CPOs) and commodity trading advisors (CTAs) engaged in swaps activities. The proficiency program will be in the form of an online learning program with an embedded…

Client Alerts | June 14, 2018 | Derivatives | Hedge Funds

On June 1, 2018, the U.S. Securities and Exchange Commission (“SEC”) announced settlements with 13 registered investment advisers whom the SEC alleged had repeatedly failed to file required annual reports on Form PF over multi-year periods. [1]  SEC-registered advisers to private funds with $150 million or more in regulatory assets under management are required to…

Client Alerts | June 13, 2018 | Hedge Funds

On May 31, 2018, Connecticut enacted the “Act Concerning Connecticut’s Response to Federal Tax Reform”. Among other things, the Act imposes a 6.99% tax on certain pass-through entities (which, prior to the Act, were not subject to any Connecticut entity-level income tax). This tax may have significant implications for fund managers and other businesses with…

Client Alerts | June 12, 2018 | Hedge Funds

Given the recent attention in the media on investing in hedge funds without paying taxes on current income, it seems well timed to revisit the basic elements of insurance dedicated funds for the sake of the fund manager that might be interested in adding such a product to their platform in order to attract new…

Client Alerts | June 6, 2018 | Hedge Funds