Written by: Jessica M. Brown
As a result of recent amendments made by the U.S. Department of Treasury to the Treasury International Capital Form B (“Form B”), private funds and investment advisers may be required to file Form B. Form B requires a fund manager or investment adviser to report certain information concerning “claims” and “liabilities” of the reporting institution to or from foreign residents.
Filing obligations may arise for private funds that provide credit to foreign entities, invest directly in foreign debt instruments, directly hold foreign short-term securities, or have a foreign credit facility. Claims or liabilities that are serviced by a U.S. entity or held by a U.S. custodian or subcustodian, do not need to be reported. Claims or liabilities with a foreign subsidiary or affiliate of a U.S. entity (such as a swap counterpart) are reportable on Form B. Investment advisers are required to report on behalf of the funds they manage and U.S. funds are not required to report on their own behalf.
There are a number of different Form B reports and generally advisers or managers with total claims or liabilities under $50 million in all geographical regions, or $25 million in an individual country, are exempt from filing. Detailed filing requirements and descriptions of each Form B can be found here.
The Federal Reserve Bank of New York (the “NY Fed”) requires investment advisers who have reportable claims or liabilities to report this information on certain monthly and quarterly reports. Reportable claims and liabilities as of December 31, 2013, must be reported by January 15, 2014 on the first monthly report, by January 20, 2014 for the first quarterly report.
The NY Fed will grant extensions and determine appropriate filing deadlines on an individual basis and encourages new filers to contact them.
Please contact us immediately if you have any questions.