In this SRZ Insights video, partners Eleazer Klein and Michael E. Swartz discuss the impact of Section 16(b), the short-swing profit rule that requires corporate insiders to disgorge any profits from trades made within six months of each other. In addition, the partners address how short-swing profit litigation is affecting hedge funds and talk about recent cases brought against fund managers.
In this SRZ Insights video, partner David M. Cohen discusses the potential impact of the Department of Labor’s fiduciary duty regulation on hedge funds. Though the new rule mostly focuses on retail investors, it could have impact on hedge funds due to the DOL’s possible recognition of certain shareholders as retail investors.
In this interview with The Hedge Fund Journal, London partner Anna Maleva-Otto discusses challenges associated with MiFID II provisions for asset managers, including modifications to commission and research processes. Anna also addresses the full scope of MiFID II and the regulation’s reach both inside and outside the EU.
Read the full interview here.
Although the U.S. Department of Labor’s (DOL) new Fiduciary Duty Rule is set to become effective on April 10, 2017, President Trump has taken action that may delay and possibly prevent the rule from becoming effective. On Feb. 3, 2017, President Trump signed a presidential memorandum that directs the secretary of the DOL to reanalyze the economic and legal impact of the Fiduciary Duty Rule.
Click here to read more about what the DOL is directed to consider.
Investment advisers may soon have a new cybersecurity reporting requirement from a federal regulator. Anti-money laundering (“AML”) requirements have recently been interpreted to include cybersecurity suspicious activity reporting (“SAR”) requirements, so if AML obligations – which are on the horizon – are extended to investment advisers, then these newly articulated cybersecurity reporting obligations will follow.
Click here to read this article in which SRZ lawyers discuss the Cyber-SAR Guidance set forth by FinCEN and considerations that investment advisers may want to take into account based on the new guidance.
In an interview with Corporate Disputes Magazine, partner Brian Daly discusses key issues facing commodities markets, including the impact of the current regulatory environment and common types of commodities-related litigation. He also discusses the steps companies can take when facing commodities-related litigation, and his expectations for how commodities litigation will develop over the next 12 months.
Click here to read the interview.
In recent weeks, the U.S. Commodity Futures Trading Commission has issued several final rules and rule proposals that directly affect hedge fund managers that trade in futures contracts (and in other commodity interests) and private equity fund managers with portfolio companies that may, as part of a hedging or raw materials acquisition effort, engage in commodity interest transactions. All fund managers should review these changes to determine if they present limitations on their business or require regulatory relief filings; registered commodity pool operators and commodity trading advisors, of course, should review all of the developments discussed.
Click here to read more about these developments.
Fund managers and investors should be aware that new Norwegian short selling rules are expected to come into force on 1 Jan. 2017 (the ‘New Rules’). The New Rules are Norway’s implementation of European Union (‘EU’) Regulation No 236/2012 on short selling and certain aspects of credit default swaps (the ‘Short Selling Regulation’). This Alert provides a summary of the new short selling disclosure rules that fund managers and investors need to consider. Fund managers should be aware that EU regulators have, over the past two years, taken a number of enforcement actions against buy-side firms for breaches of disclosure obligations under the Short Selling Regulation (including in the case of missed or late filings).
Click here to read more about the new disclosure obligations in respect of net short positions.
The Securities and Exchange Commission (“SEC”) continues to actively enforce Rule 21F-17 under the Securities Exchange Act of 1934, which provides that “no person may take any action to impede an individual from communicating directly with the Commission staff about a possible securities law violation, including enforcing, or threatening to enforce, a confidentiality agreement … with respect to such communications.” In its most recent actions, the SEC charged companies with violating Rule 21F-17 by including language in severance agreements that specifically prohibited former employees from communicating disparaging information about the company to the SEC and that prohibited former employees from voluntarily communicating with or contacting any governmental agency in connection with a complaint or investigation.
Click here to read more.
In a recent interview with Private Funds Management, partners Stephanie Breslow, Omoz Osayimwese, Phyllis Schwartz and Joseph Smith discuss fund agreements between LPs and GPs, which are under constant scrutiny. The partners discuss recent changes, co-investment rights and key terms that are crucial in the current market.
Click here to read the interview.