On Sept. 25, 2019, the SEC adopted Rule 6c-11 under the Investment Company Act of 1940, as amended (“1940 Act”). The new rule allows sponsors of exchange-traded funds (“ETFs”) to launch and operate ETFs without first obtaining individual exemptive orders from the SEC. Subject to satisfying certain conditions, the rule provides for blanket exemptive relief
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Sanctions Update: Iran, Venezuela, Ukraine, Nicaragua and Cuba
OFAC continues to issue sanctions and associated guidance relating to a number of targeted jurisdictions. Starting with Iran, which has been the subject of new sanctions over recent months, and continuing with Venezuela, Ukraine, Nicaragua and Cuba, this Alert sets forth a summary of the more recent sanctions developments.
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Private Funds Regulatory Update | August 2019
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SEC Releases Final Interpretation of the Standard of Conduct for Investment Advisers
The SEC has, for some time, been reviewing the standard of conduct required of investment advisers and broker-dealers under federal securities laws. Recently, these various initiatives concluded with the publication of four final items of guidance.
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New Fund-of-Funds Rule…
FDIC and OCC Approve Volcker 2.0 — Summary of Amendments to Fund Activity Provisions
On Aug. 20, 2019, the Federal Deposit Insurance Corporation (“FDIC”) and the Office of the Comptroller of the Currency (“OCC”) approved a final rule to amend the regulations adopted in 2013 implementing Section 13 of the Bank Holding Company Act, commonly referred to as the “Volcker Rule.” While the Final Rule is largely similar to…
SEC Staff Publishes Statement on LIBOR Transition
On July 12, 2019, the staffs of several divisions within the SEC published a statement on the transition away from the London Interbank Offered Rate (“LIBOR”). The panel banks which currently report information used to establish LIBOR for different currencies have committed to do so through 2021. After 2021, it is likely that LIBOR will…
SRZ FAQ: US Advertising Rules for UK Fund Managers
Are the US advertising rules important for all UK managers?
As U.S. advertising rules fall under U.S. anti-fraud statutes, whether a U.K. fund manager is registered with the SEC or not, there are specific rules managers need to comply with for their U.S. marketing materials. In this SRZ FAQ video, special counsel Brad Caswell discusses…
EMIR REFIT: Investment Funds Are Required to Notify the FCA and ESMA If They Exceed the Clearing Threshold with Effect from 17 June 2019
EMIR REFIT enters into force on Monday, 17 June 2019.
Under EMIR REFIT, financial counterparties are required to calculate their aggregate month-end average positions in derivatives for the previous 12 months to determine whether they exceed one or more of the clearing thresholds specified in EMIR. The definition of FC includes alternative investment funds and…
New NFA Proficiency Requirements for Hedge Fund Managers
The National Futures Association, the self-regulatory organization for the commodity futures and swaps industry, recently updated its rules to impose “swaps proficiency requirements” on associated persons of NFA members that engage in swaps-related activities. These requirements are likely to be applicable to a significant number of hedge fund advisers (i.e., advisers that are, or are…
SEC Charges Fund Manager for Improper Cross Trades
On March 15, 2019, the U.S. Securities and Exchange Commission charged a private fund manager and its former chief operating officer with manipulating the price of an asset sold by one client to another. The SEC’s orders charge Talimco LLC and its former Chief Operating Officer Grant Rogers with breaching their fiduciary duties in violation…
NFA Update: New Supervision and Cybersecurity Obligations for Private Fund Managers Registered with the National Futures Association
The National Futures Association issued two Interpretive Notices that will affect all private fund managers that are NFA members (i.e., managers with funds or accounts that trade commodity interests and that are not eligible for an exemption from registration with the Commodity Futures Trading Commission). While the Interpretive Notices address different areas of risk —…