Financial Services Quarterly Report
December 22, 2015
A review of recent developments in the international financial services industry, including:
- And a Partridge in a Pear Tree: Top 12 Regulatory Heads-up for the Holidays – from Asia and Beyond
- Is the U.S. SEC IM Guidance Update Initiative Becoming a Thing of the Past?
- Developments in the Luxembourg Financial Sector
- The VW Case and the German Act on Model Case Proceedings in Disputes under the Capital Market Law
- Further Change to the UK Taxation of Carried Interest
- U.S. SEC Proposes New Exemptive Rule to Regulate Funds’ Use of Derivatives
- 5th Annual Funds Congress
- Dechert's World Compass
- International Sanctions: Resources for Meeting Compliance Challenges
And a Partridge in a Pear Tree
This article presents top twelve regulatory hot topics for the holidays – from Asia and beyond – to focus on and deal with in the new year, after all the festivities!
Is the U.S. SEC IM Guidance Update Initiative Becoming a Thing of the Past?
Over the past three years, the SEC Division of Investment Management has provided informal guidance and interpretations regarding issues of relevance to the investment management industry. In 2015, the Division staff has published far fewer guidance updates than in prior years, raising the question of whether the Division will continue their issuance.
Developments in the Luxembourg Financial Sector
The Luxembourg government recently launched the “reserved alternative investment fund” – a new form of AIF that does not require prior approval from the Luxembourg CSSF. In other developments, the CSSF issued frequently asked questions on UCITS eligible assets and diversification rules, as well as a regulation providing rules for marketing foreign AIFS to retail investors in Luxembourg.
The VW Case and the German Act on Model Case Proceedings in Disputes under the Capital Market Law
Volkswagen AG has lost more than one-third of its value following the September issuance by the U.S. Environmental Protection Agency of a Notice of Violation of the Clean Air Act to VW and certain affiliated entities. In connection with this scandal, VW is accused of having provided incomplete capital market information, and investors around the world have announced that they will file damage claims against VW.
Further Change to the UK Taxation of Carried Interest
The UK Government, as anticipated, issued draft legislation on 9 December designed to establish clear rules as to when carried interest can qualify for favourable capital gains tax treatment. The draft legislation follows a consultation exercise announced in the Summer Budget, which initially proposed two alternative methods for determining when carried interest could qualify for capital gains tax treatment.
U.S. SEC Proposes New Exemptive Rule to Regulate Funds’ Use of Derivatives
At an open meeting of the Securities and Exchange Commission on December 11, 2015, the SEC by a three-to-one vote approved the proposal of a new rule under the Investment Company Act of 1940 related to the use of derivatives by registered investment companies (open-end funds, closed-end funds and exchange-traded funds) and business development companies.
5th Annual Funds Congress
The Funds Congress is a thought leadership and networking event covering all major asset classes (e.g., hedge funds, private equity, private debt, UCITS, long-only, real estate, infrastructure) and fund jurisdictions. The Funds Congress will focus on key themes for the year ahead in asset management, including: new regulations; evolving investor needs; marketing and distribution strategies; new product development opportunities; and tax changes.
Dechert's World Compass
World Compass is a web-based subscription service that offers investment firms 24/7 access to concise global marketing and distribution guidance in more than 100 jurisdictions worldwide, updated regularly to ensure accuracy, and covering funds, managed accounts and beneficial ownership reporting.
International Sanctions: Resources for Meeting Compliance Challenges
International sanctions – such as economic sanctions, asset-freezing measures and trade embargoes – are a major compliance challenge for companies worldwide. Dechert has established a web page providing resources regarding the commercial complexities, legal intricacies and regulatory demands surrounding sanctions.
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