Written by Michael Wu and Judy Deng Although fund managers may form private equity funds of funds in China that have non-Chinese investors (hereinafter referred to as “foreign-invested fund of funds” or “FIE FoFs”), they need to be aware of certain currency conversion issues that may apply based on how…
The Securities and Exchange Commission and Commodity Futures Trading Commission recently adopted interim final rules for the reporting of swaps that were entered into prior to the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act and had not expired as of July 21, 2010 (“pre-enactment swaps”). The…
The Investment Fund Law Blog has been selected as one of the LexisNexis Top 25 Business Law Blogs for 2010. You can read the full announcement and list of honorees here. We are in very good company in the Top 25, which includes such highly regarded blogs as thecorporatecounsel.net, the Harvard Law…
Under Secretary for International Affairs Lael Brainard recently delivered a speech at the Institute of International Bankers’ “Regulatory Dialogue with Government Officials” urging other nations to adopt the U.S. approach to hedge fund regulation: It is also vital to have common agreement on the regulation of hedge funds, and to…
Written by Michael Wu and Judy Deng Since 2007 there have been a number of circulars (i.e., ordinances issued by industrial regulators) and regulations pertaining to whether Chinese insurance companies are permitted to invest their assets in offshore (i.e., outside of China) private equity. The following summarizes the relevant laws…
Written by Michael Wu and Judy Deng A Chinese foreign-invested fund management company (“FIE FMC”) is a fund management company formed in China with at least one non-Chinese owner. FIE FMCs are generally formed to manage foreign-invested PE/VC funds located in China (“Foreign-Invested RMB Fund”), such as Foreign-Invested Venture Capital…
On September 30, 2010, California Governor Arnold Schwarzenegger signed into law AB 1743, which regulates the activities of placement agents who solicit investments from public pensions on behalf of investment managers. The new law: prohibits a person from acting as a placement agent in connection with any potential investment by…
Written by Michael Wu and Judy Deng Most of the “RMB fund” structures currently being used to enable non-Chinese investors to participate in private equity and venture capital investments in China are tax driven. However, some fund managers are using a RMB fund structure that is not designed to address a particular…
Written by Judy Deng On September 5, 2010, the China Insurance Regulatory Commission (CIRC) issued a circular (“CIRC Circular 79”) to explicitly permit China’s insurance companies to invest their assets in private equity. Such investments may be either direct or indirect, making China’s insurance companies potential equity investors in onshore…
On August 13, 2010, Governor Paterson signed into law certain technical amendments to New York’s power of attorney statute. These amendments clarify and restrict the application of the sweeping power of attorney statute that went into effect on September 1, 2009, which, while designed to protect the elderly and incapacitated in the context of…