Investment Fund Law Blog

InvestmentFundLawBlog

Updates and Insights on Legal Issues Facing Fund Managers and Investors

Category Archives: Guest Post

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What Will happen to the Hedge Fund Industry if we Experience a 2008 Type Market Decline?

Posted in Guest Post, Private Funds
With interest rates and credit spreads near historic lows and equity valuation above historical averages, many people are concerned that the Federal Reserve, by artificially keeping rates low, has created a 2007 type asset bubble in the capital markets where many securities are priced to perfection. What happens to the financial markets when the Fed … Continue Reading

China’s New Foreign Exchange Control Rule on Outbound and Round-Trip Investment

Posted in Advisory, China Funds, Guest Post
Replacing Circular 75, Circular 37 simplifies the SAFE registration process for Chinese residents seeking offshore investments and financings, and it liberalizes cross-border capital outflow by Chinese residents. In addition, Circular 37 also permits registration of equity incentive plans of non-listed Special Purpose Vehicles. In July 2014, the State Administration of Foreign Exchange (SAFE) of the … Continue Reading

CIOs Spur Revenue Generation Through Smart Cybersecurity

Posted in Guest Post, Investment Advisers
This article was originally published in The Wall Street Journal‘s CIO Journal on September 11, 2014. Today as companies increasingly realize the value of strong cybersecurity, those CIOs who successfully implement an effective cybersecurity system should be viewed as a critical part of the revenue generation effort. An effective CIO who maintains a robust cyber … Continue Reading

Advisory Alert! – Repatriation of Funds Out of China

Posted in Advisory, China Funds, Guest Post, Investment Advisers
China imposes controls on the inflow and outflow of foreign exchange. Given the involvement of State Administration of Foreign Exchange and various other governmental agencies in the process, repatriating funds from China can be a trap for the unwary. Foreign investors should familiarize themselves with the approval requirements and procedures. Read more: Advisory – Aug … Continue Reading

Cyber Security and Investing: Steps to Help Avoid a Digital Disaster

Posted in Guest Post, Investment Advisers
The relentless attention being paid to cyber-attacks is driving companies to increase cyber security budgets and purchases. In turn, this has led institutional investors and asset managers to see potentially massive returns associated with companies in the cyber security market. Indeed a number of companies that have gone public have had phenomenal success, and the … Continue Reading

House of Representatives Passes SAFETY Act Amendment – Clarifies that liability protections are available for cyber attacks

Posted in Advisory, Client Alert, Guest Post
The U.S. House of Representatives took a major positive step towards increasing the nation’s cyber security posture today when, on a voice vote, it passed H.R. 3696, the “National Cybersecurity and Critical Infrastructure Protection Act.” The NCCIP bill, co-sponsored by House Homeland Security Chairman Mike McCaul, Ranking Member Bennie G. Thompson, Subcommittee Chair Patrick Meehan, … Continue Reading

Financial Markets Association’s 2014 Securities Compliance Seminar- April 23-25

Posted in Events, Guest Post
The Financial Markets Association is hosting its annual Securities Compliance Seminar in Nashville, TN on April 23-25,2014.  This seminar is intensive training for intermediate as well as seasoned compliance specialists, internal auditors, attorneys, and regulators that focuses on current compliance topics, new rules or interpretations and regulatory developments, including a Dodd-Frank regulatory update.  The seminar … Continue Reading

California’s New LLC Law: Next Steps for California LLCs

Posted in Advisory, Guest Post, Investment Advisers, Private Funds
If your management company or fund was formed as a California limited liability company, you need to review your Operating Agreement to determine whether amendments need to be made. On January 1, 2014, California’s Beverly-Killea Limited Liability Company Act (Old Act) was superseded by the California Revised Uniform Limited Liability Company Act (New Act). The … Continue Reading

Marketing Your Fund To And Through Consultants And Gatekeepers

Posted in Guest Post
Written by guest contributor, Bruce Frumerman, Frumerman & Nemeth Inc. This article first appeared in FINAlternatives on February 3, 2014 and is re-printed with permission below.  ‘Soft’ manager qualities are often what separates your fund from competitors is a summary finding in the recently reported survey of institutional consultants and gatekeepers by Market Strategies International’s … Continue Reading

The Volcker Rule–A Suggested Approach for Banking Entities When Analyzing its Impact on Business Models, Activities and Transactions

Posted in Advisory, Guest Post, Private Funds
Written by:  Joseph T. Lynyak, III and Anthony H. Schouten More than three years following the passage of the Dodd-Frank Act, and intense inter-agency negotiations, the federal financial regulatory agencies collectively adopted the final version of the “Volcker Rule,” or “Rule”—which imposes new and potentially severe limitations on domestic and foreign banking entities’ activities in … Continue Reading

Canada Imposes Chaperone Requirement for Investment Sub-Advisers

Posted in Guest Post, Investment Advisers
This guest post from Blake, Cassels & Graydon LLP, co-authored by Ross McKee, Partner, Blake, Cassels & Graydon LLP, is reprinted here with permission.  INTRODUCTION The Canadian Securities Administrators have proposed a new uniform Canadian registration exemption for investment sub-advisers, as part of a package of proposed amendments to Canadian registration rules. The proposed exemption … Continue Reading

Credit Portfolio Management in a Turning Rates Environment

Posted in Guest Post
This article was published by Investcorp and is reprinted here with permission. Executive Summary This paper analyzes correlations between credit spreads and interest rates across various sectors and credit ratings in the US. Our work was prompted by chairman Bernanke’s announcement this summer of possible tapering of the ongoing quantitative easing program which marked a turning point … Continue Reading

Here’s Why The Canadian Hedge Fund Industry Is So Small

Posted in Guest Post, Private Funds
This article was published by Business in Canada and is reprinted here with permission. Business in Canada recently had the opportunity to interview Richard Taglianetti, a giant in the hedge fund universe who has raised millions of dollars for start-up managers over the course of his career. At present, Richard serves as the senior managing director of hedge … Continue Reading

Minimizing Anti-Corruption Deal Risk While Maximizing Returns on Venture Capital Investments

Posted in Advisory, Guest Post, Private Funds
This article was published by The FCPA Report and is reprinted here with permission. More and more, venture capital firms are investing in start-ups seeking to expand internationally or with nascent cross-border operations in place.  Such investments offer opportunities for lucrative returns but also carry significant anti-corruption risk that VC firms are often ill-equipped to manage.  For … Continue Reading

Recent Regulation FD Enforcement Action Provides Lessons for Closed-End Funds

Posted in Guest Post, Investment Advisers, Private Funds
Written by:  Kimberly V. Mann The Security and Exchange Commission’s recent enforcement action against Lawrence D. Polizzotto serves as a reminder to all issuers that Regulation FD enforcement is alive and well. The Polizzotto Case Polizzotto, the former vice president of investor relations at First Solar, Inc. (and, ironically, a member of the company’s Disclosure … Continue Reading

What Fund Managers Sometimes Forget About Cayman Funds

Posted in Advisory, Guest Post, Investment Advisers, Private Funds
Written by:  Kimberly Mann Private investment fund structures frequently include one or more vehicles that are organized under the laws of the Cayman Islands. The Cayman Islands is a preferred jurisdiction because there is no tax on income, profits or capital gains, nor is there withholding tax. In addition, at the time of its formation, … Continue Reading

Admit It! SEC May Seek Admissions of Wrongdoing in Settlements

Posted in Advisory, Guest Post, Registered Investment Companies
Written by: Marc H. Axelbaum, Sarah A. Good, G. Derek Andreson, and Emily Burkett The U.S. Securities and Exchange Commission (“SEC”) is poised to modify its “no-admit, no-deny” policy to seek more admissions of wrongdoing from defendants as a condition of settlement in enforcement cases. The change comes on the heels of recent criticism of … Continue Reading

JOBS Act Implementation Update

Posted in Guest Post
This article was published by CounselWorks and is reprinted here with permission. April 12, 2013 Dear Friends, Yesterday, the SEC testified before Congress providing an update on the implementation of the JOBS Act. Regarding the implementation of the lift on the prohibition against general solicitation, the SEC said its staff are “developing recommendations for the … Continue Reading

Supreme Court Finds No Fraud Exception to Five-Year Statute of Limitations for Government Lawsuits Seeking Civil Penalties

Posted in Advisory, Guest Post
Written by David M. Furbush, Sarah Good and Bruce A. Ericson The U.S. Supreme Court’s recent decision in Gabelli v. Securities Exchange Commission (Feb. 27, 2013) rejects an attempt by the Securities and Exchange Commission to extend a statute of limitations by invoking a “discovery rule.” The SEC had proposed that, in an action by … Continue Reading

Private Equity: Blindsided by the FCPA– Hedging Against Anti-Corruption Deal Risk

Posted in Guest Post, Private Equity
Written by:  G. Derek Andreson, James L. Kelly, Christopher M. Zochowski, Marc H. Axelbaum and Ryan R. Sparacino This article was also published in Law360. Until a few years ago, private equity firms enjoyed relative insulation from regulatory scrutiny of overseas acquisitions and the operations of multi-national portfolio companies. No longer is that the case. … Continue Reading

Citing Concepcion, FINRA Panel OKs Class Action Waivers in Broker-Dealer Customer Arbitration Agreements

Posted in Broker-Dealers, Guest Post
Written by:  Sarah A. Good and Jessica R. Bogo A Financial Industry Regulatory Authority (“FINRA”) hearing panel held that FINRA’s own rules prohibiting judicial class action waivers in broker-dealer customer arbitration agreements are preempted by the Federal Arbitration Act and unenforceable. Once this decision becomes final, it will likely change the landscape of broker-dealer arbitrations. … Continue Reading

FINRA Issues Voluntary Interim Form for Crowdfunding Portals

Posted in Advisory, Guest Post, Investment Advisers, Private Funds
Written by: Louis A. Bevilacqua On January 10, 2013 the Financial Industry Regulatory Authority (“FINRA”) issued a voluntary Interim Form for funding portals (the “Interim Form”). The Interim Form is designed for prospective crowdfunding portals under the Jumpstart our Business Startups Act (the “JOBS Act”), which was enacted on April 5, 2012. Title III of … Continue Reading

Final FATCA Regulations Amplify Broad Sweep of Legislation for Securities and Banking Industry

Posted in Advisory, Guest Post
This article was published by Wolters Kluwer in its February 2013 Special Report.    The Treasury and IRS have adopted final regulations implementing the Foreign Account Tax Compliance Act (FATCA). The regulations provide additional certainty for financial institutions and government counterparts by finalizing the step-by-step process for U.S. account identification, information reporting, and withholding requirements … Continue Reading