Insights

What Hedge Fund Managers Should Do Now In April 2016, the Department of Labor (“DOL”) released regulations that expanded the definition of an “advice fiduciary” with respect to plans covered by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and IRAs and other plans covered by Section 4975 of the Internal Revenue…

Client Alerts | May 26, 2017 | Hedge Funds

On April 7, 2017, the Department of Labor officially delayed, until June 9, 2017, the applicability date of regulations that would change the definition of an “advice fiduciary” for plans covered by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of 1986, as amended.…

Client Alerts | April 14, 2017 | Hedge Funds

A recent decision by the United States Supreme Court, Czyzewski v. Jevic Holding Corp., curtails the controversial practice of concluding chapter 11 cases with “structured dismissals”. The decision narrows the range of options available to parties attempting to craft settlements resolving chapter 11 cases, and could increase the leverage available to holdouts. Background In 2008…

Client Alerts | March 24, 2017

In April 2016, the Department of Labor (“DOL”) released regulations that, among other things, modify the definition of an “advice fiduciary” for plans covered by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The new definition also applies to IRAs and other non-ERISA plans which are subject to Section 4975 of the…

Client Alerts | March 9, 2017

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