Institutional Investors – Page 9 – Global Investment Law Watch

Australia: ASIC Provides Practical Guidance as Long Awaited CCIV Arrives

Jun 23 2022

By Kane Barnett and Bernard Sia

ASIC has published Information Sheet 272 (INFO 272) and Report 728 (REP 728) on the eve of the corporate collective investment vehicle’s (CCIV) commencement.

With the commencement date for CCIVs being 1 July 2022, today ASIC released 7 regulatory guides relating to the registration and licensing requirements for CCIVs. We outline the key features of CCIVs in our previous update. INFO 272 provides much needed clarity on how both the CCIV itself and its initial sub-funds are to be registered.

Australia: Eagerly Awaits Foreign Financial Service Providers’ Legislation

Jun 07 2022

By Jim Bulling

In February this year we provided an update on the introduction of the draft legislation providing relief to Foreign Financial Services Providers (FFSPs) in Australia.

As we discussed back in February the draft legislative pack provided three significant potential exemptions for FFSPs namely:

Professional Investor Exemption
Comparable Regulator Exemption
Fit and Proper Person Test Exemption

United States: All Square: Amended CFTC “Block Trade” Definition Officially Effective

May 31 2022

By: Cheryl L. Isaac and Michael G. Lee

On 25 May 2022, the U.S. Commodity Futures Trading Commission’s (CFTC) block trade no-action relief, provided in CFTC No-Action Letter (NAL) 20-35, expired. As of that day, all swap execution facilities (SEFs) are required to comply with the amended definition of “block trade” provided under CFTC Regulation 43.2.

“Block trades” are large, privately negotiated (either directly or through a broker) swap transactions that meet certain quantity thresholds. Block trades must qualify for execution apart from the SEF’s order book or trading platform in accordance with the relevant SEF’s rules, pursuant to CFTC Regulations.

Europe: AIFMD II – Proposed Refinements to Loan Originating Fund Proposals

May 31 2022

By: Philipp Riedl

On 18 May 2022, the Rapporteur submitted to the Committee on Economic and Monetary Affairs (ECON) a report suggesting changes to the EU Commission’s envisaged regulation of loan originating funds under its proposed AIFMD amendments (AIFMD II). The report includes some proposed relief, notably:

Australia: ESG Investing a target for the New Government?

May 23 2022

By Jim Bulling and Kithmin Ranamukhaarachchi

A Federal election in Australia was held at the weekend which resulted in a change of Government. One of the signature priorities of the incoming Government is to introduce policies which more comprehensively address climate change challenges.

Australia: Finally, a new fund vehicle

May 06 2022

By Kane Barnett

On 1 July 2022 Australia will finally get a new fund vehicle, the corporate collective investment vehicle (CCIV).

Historically, Australian funds have been established as unit trusts or, in the case of certain venture capital funds, limited partnerships. The CCIV is a corporate structure that is intended to be more internationally recognisable than the trust-based fund structure as it is similar to the equivalent structure in other key fund jurisdictions such as the United Kingdom, Cayman Islands, Singapore and Hong Kong.

United States: Being a SPAC is No Fun(d): SEC Proposes “Safe Harbor” Exclusion for SPACs

Apr 14 2022

By: C. Todd Gibson

Last year, a number of lawsuits were filed against SPACs and their sponsors challenging (in part) their status under the U.S. Investment Company Act of 1940 (“1940 Act”) arguing that SPACs are essentially unregistered investment companies. A brief filed by two professors supported this notion on the basis that SPACs typically hold government securities until a target company is acquired (and thus, such SPACs are investment companies required to be registered). In an unusual move to provide SPAC market participants with some comfort on this issue, a number of law firms joined together refuting this position in a joint public statement outlining legal practioners’ historic view that SPACs are not investment companies.

Australia: Russian Sanctions and Fund Managers

Apr 08 2022

By: Jim Bulling and Kithmin Ranamukhaarachchi

As Russia’s invasion of Ukraine continues, global economic sanctions have evolved into a complex web of restrictions and prohibitions with limited exceptions. As a result, asset managers have more layers of regulation to navigate in relation to current holdings and future investments in virtually all markets directly or indirectly connected to Russia, Belarus and Ukraine (Region).

Europe: From Russia With FUD: Settlement of Credit Derivatives Transactions Referencing Entities Under Western Sanctions and Kremlin Capital Controls

Mar 29 2022

By: Anthony R.G. Nolan and Kenneth Holston

Russia’s war against Ukraine has led in record time to the implementation of extensive anti-Russian sanctions by the United States, the European Union, and the United Kingdom, among others. Those initiatives in turn have led to the imposition of extensive capital controls within Russia. The combined effect of Western sanctions and Russian countermeasures threaten the liquidity and creditworthiness of Russian debt obligations. Although the Russian Federation avoided defaulting on a coupon payment on its dollar bonds on March 16, it subsequently announced that it will satisfy its obligations under rubles a dollar bond coming due on April 4 by making payment of principal and interest in rubles.

Australia: FFSP Regime Finally Announced – Good News for Offshore Managers

Mar 01 2022

By: Jim Bulling and Felix Charlesworth

FFSP regime finally announced – good news for offshore managers

On 17 February 2022, the Government introduced the final version of the Foreign Financial Service Provider (FFSP) regulatory regime into Parliament.

The new laws outline three ways in which FFSPs will either be exempt from the requirement to hold an Australian Financial Services Licence (AFSL), or be able to fast track the licencing process. These exemptions will commence on 1 April 2023, to coincide with the expiry of the transitional relief.

Catagory:Institutional Investors