Tag: United States

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Europe: FCA Challenge to UK Fund Service Providers    
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United States: Private Funds and SEC Crypto Regulation
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United States: Being a SPAC is No Fun(d): SEC Proposes “Safe Harbor” Exclusion for SPACs
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Australia: Russian Sanctions and Fund Managers
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Europe: Divergence Between UK and EU Priips Disclosures Set to Add Complexity for Managers    

Europe: FCA Challenge to UK Fund Service Providers    

By: Andrew Massey and Melissa Vance

Fund managers can expect changes to custodian and other fund service provider practices in response to regulator challenge, and should review their due diligence of service providers.

In a letter on 23 March 2022, the FCA instructed the Chief Executive and Boards of third-party custodians, depositories for authorised and non-authorised funds, and third-party administrators to review key risks identified by the FCA, including the following:

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United States: Private Funds and SEC Crypto Regulation

By: Rob Weiss

Fund sponsors continue to search for ways to get their investors exposure to cryptocurrencies.

For sponsors able to offer registered fund products, exchange-traded products (ETPs) are attractive: available to retail investors, highly liquid, and without a fixed term, ETPs check several boxes for sponsors and investors alike. However, while the SEC has authorized listing of ETPs that trade in bitcoin futures regulated by the CFTC, the SEC has not authorized listing of ETPs that trade directly in spot cryptocurrency. We recently wrote an article on this point, which can be accessed here.

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

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.

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Australia: Russian Sanctions and Fund Managers

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).

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Europe: Divergence Between UK and EU Priips Disclosures Set to Add Complexity for Managers    

By: Andrew Massey

On 25 March 2022, the FCA confirmed new requirements for the key information document (KID) required for package retail and insurance-based investment products (PRIIPs) in the UK: policy statement 22/2.  Investment funds are generally categorised as PRIIPs, although UK UCITS and UK non-UCITS retail schemes are exempted from the PRIIPs KID requirement until 31 December 2026. 

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