Insights

The Cayman Islands Department for International Tax Cooperation (“DITC”) has announced that the Cayman AEOI Portal (for Common Reporting Standard (“CRS”) and US FATCA reporting) will be taken offline on Friday, June 1, 2018, at 12:00 noon. The statutory deadline for 2017 CRS and US FATCA reports remains May 31, 2018.  The DITC intends for…

Client Alerts | May 30, 2018 | Hedge Funds

The United States Bankruptcy Court for the Southern District of New York recently entered an order enforcing a UK scheme of arrangement[1] that contained provisions – non-consensual third-party releases – that might not necessarily have been permissible under U.S. bankruptcy law. In re Avanti Commc’ns Group plc, No. 18-10458 (MG), (Bankr. S.D.N.Y. Apr. 9, 2018)…

Client Alerts | May 15, 2018

A New York district court has affirmed, on appeal, the dismissal of an attempt by the Lehman Brothers estate to unwind payments made in connection with a series of CDO structures. The decision, Lehman Brothers Special Financing Inc. v. Bank of America N.A. (In re Lehman Brothers Holdings, Inc.), marks the second time that a…

Client Alerts | April 5, 2018

In its second Bankruptcy law decision in a week, the United States Supreme Court has limited the role of appellate courts in reviewing Bankruptcy Court determinations of insider status under section 101(39) of the Bankruptcy Code. The case, U.S. Bank N.A., Trustee, by and through CWCapital Asset Management LLC v. Village at Lakeridge, LLC, was…

Client Alerts | March 22, 2018

On March 15, 2018, in a two-to-one decision, the United States Court of Appeals for the 5th Circuit overturned a district court decision and vacated the Department of Labor’s ERISA advice fiduciary rule, which had gone into effect in June 2017. For our prior newsletter on the DOL’s advice fiduciary rule, please click here. The…

Client Alerts | March 20, 2018 | Hedge Funds

Section 475(f) of the Internal Revenue Code of 1986, as amended, provides that a trader in securities or commodities can make elections to “mark-to-market” their securities and/or commodities and treat increases or decreases in value as ordinary. A fund must be a trader, and not an investor, in order to be able to make a…

Client Alerts | March 13, 2018 | Hedge Funds

The United States Supreme Court has narrowed the scope of section 546(e), the Bankruptcy Code securities safe harbor for clawbacks, such that it may be available in many cases to only banks, large funds, and other large financial institutions. The case, Merit Management Group LP v. FTI Consulting, Inc., is the first Supreme Court test…

Client Alerts | March 6, 2018 | Hedge Funds

On February 7th, the Office of Compliance Inspections and Examinations (“OCIE“) of the Securities and Exchange Commission (the “SEC“) announced its 2018 examination priorities for registered investment advisers.[1] OCIE grouped the priorities into five general thematic areas: (1) protecting retail investors, concentrating on senior investors and retirement investments; (2) compliance and risks in critical market…

Client Alerts | March 5, 2018 | Hedge Funds

On March 1, 2018, Notice 2018-18 was released, announcing that the Department of the Treasury and the Internal Revenue Service (the “IRS”) intend to issue regulations providing guidance on the application of Section 1061 of the Internal Revenue Code, which relates to the taxation of carried interest. The Notice further announced that the regulations will…

Client Alerts | March 1, 2018 | Emerging Companies & Venture Capital | Hedge Funds

Overview: On February 21, 2018, the U.S. Supreme Court issued its ruling in Digital Realty Trust, Inc. v. Somers, resolving disagreement among the Second, Fifth and Ninth Circuit Courts of Appeals and the SEC concerning the scope of the anti-retaliation provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, applicable to…

Client Alerts | February 23, 2018 | Employment Litigation | Hedge Funds