By Karen Wallace, Global Head of Compliance Apex Fund Services The IRS on-line registration portal went ‘live’ on 1 January this year and Foreign Financial Institutions (“FFIs”) should now be preparing to register with the IRS to obtain a Global Intermediary Identification Number (“GIIN”). FFIs must register with the IRS to obtain a GIIN by […] Read more »
Fixed Income Signals: A Red Alert for Compliance and Valuations?
by Deborah Prutzman, The Regulatory Fundamentals Group The SEC recently issued guidance about risk management in the fixed income market in light of the prospect of the Fed tapering its quantitative easing program and triggering a rise in interest rates. It noted that the net assets of bond funds are at “near-historic highs” with much […] Read more »
How Sustainable is Your Information or Insight Advantage?
by Deborah Prutzman, The Regulatory Fundamentals Group The ability to obtain information that leads to insights concerning market trends is frequently considered the mark of a savvy investor. However, as we noted last July, many methods of acquiring information are coming under increased scrutiny. Regulators and the public may deem even entrenched practices unfair. As […] Read more »
Hedge Funds Need To Submit AIFM Applications To the FCA Well In Advance
By Anthony Rawlins, Compliance Manager at Moore Stephens We have recently had an update on the Alternative Investment Fund Managers Directive (AIFMD) transitional arrangements. While the deadline extension is good news for those firms that have yet to prepare their AIFM variation of permissions, this development should not be viewed as a disincentive to act […] Read more »
GLG Fine Illustrates That Valuation Remains a Top Regulatory Focus
By Deborah Prutzman, The Regulatory Fundamentals Group LLC The SEC charged GLG Partners, L.P. (“GLG”), a UK investment adviser, and GLG Partners, Inc. (“GPI”), its US holding company traded on the NYSE, for failing to maintain adequate controls over the valuation of Level 3 assets. This is one of several valuation cases settled by the […] Read more »
Hedge Fund Managers Should Not Be Daunted By Process To Enter US Market
By Deborah Prutzman, The Regulatory Fundamentals Group LLC It is not that the applicable laws in the US are so much more onerous than those found in other jurisdictions. In fact, in many instances they are less burdensome. Then what is the issue? It is the complexity and perceived contradictions of the US legal system. […] Read more »
£50m Trading Litigation Bill Underscores Potential Of ISDA Arbitration Clauses
By Timothy Lindsay, Partner, Dechert LLP An 800-page English High Court judgment last week in a long-running and complex FX and derivatives litigation in London—described by the judge, following a four-month trial and a reported £51m indemnity costs order against the unsuccessful party, as “almost unmanageable”—is certain to ignite debate about the efficiency of English litigation.[1] […] Read more »
Hedge Fund LLPs and Other Partnerships in Choppy Waters for Tax?
From Daniel Lewin of Kaye Scholer On May 20, 2013, HM Revenue & Customs (HMRC), the UK Revenue authority, published a consultation document that proposes significant new anti-avoidance tax measures aimed at UK partnerships, and in particular at English limited liability partnerships (LLPs). This consultation document continues to be the subject of controversial discussion between […] Read more »
Financial Conduct Authority Guidance on AIFM Directive Remuneration Provisions
By Dechert LLP The UK Financial Conduct Authority (FCA) released proposed guidance on 6 September 2013 on its implementation of the remuneration provisions in the AIFM Directive (the AIFM Remuneration Code) for UK alternative investment fund managers (AIFMs). Investment managers taking advantage of the transitional period will need a compliant remuneration policy in place by […] Read more »
Third Party Marketers as Appointed Representatives of Hedge Fund Management Companies
By Claire Cummings, Cummings Law Ltd. What is an appointed representative? An appointed representative (“AR”) is a person or firm which is able to arrange deals in investments and advise on investments by being authorised under the umbrella of a firm which is directly authorised by the FCA (the principal”) which is already authorised to […] Read more »