Archives: Hedge Funds

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10 takeaway points on Luxembourg’s RAIF

The Luxembourg law on reserved alternative investment funds (RAIF) is a welcome addition to the alternative investment funds (AIF) industry and we have seen keen interest from the fund and asset management industry in this new platform. Since its introduction last summer, for the first time in Luxembourg there is the ability to set up … Continue Reading

ESMA Advice Extending the AIFMD Passport: Including the United States, Hong Kong, Singapore and Switzerland

On 18 July 2016 the European Securities and Markets Authority (ESMA) published its advice to the European Parliament, the Council and the Commission on the application of the Alternative Investment Fund Managers Directive (AIFMD) passport to non-EU Alternative Investment Fund Managers (AIFMs) and Alternative Investment Funds (AIFs) in twelve non-EU countries: Australia, Bermuda, Canada, Cayman … Continue Reading

Brexit for asset managers and fund managers – don’t panic, it may not be as bad as it at first appears!

UK regulated fund managers and asset managers should bear in mind that, while the Brexit vote has occurred, this does not bind the UK Parliament. As of the date of writing (12 July 2016), the process of withdrawal under Article 50 of the Lisbon Treaty has not yet started. Although the timetable for withdrawal under … Continue Reading

AIFMD Passporting Update

EU regulated AIFMs promoting EU domiciled AIFs – We have lived with AIFMD since the full implementation date of 22 July 2014 with the marketing passport being available from that date for EU regulated AIFMs promoting EU domiciled AIFs. The ESMA Opinion – Use of the AIFMD Passport – ESMA published its Opinion on 30 July 2015 … Continue Reading

Is breaking up hard to do?

Click here for a discussion by Reed Smith partners Dale Gabbert and Jacqui Hatfield, together with the Funds Europe Editorial, on the issues a eurozone break-up would present for fund managers. Dale and Jacqui identify the levels at which a fund manager needs to analyse risk, including entity risk and service provider risk. This article was published in the … Continue Reading

SEC Regs Amended to Allow Hedge Funds to Advertise: Potential Data Privacy Implications

This post was also written by Paul Bond, Keri Bruce, and Frederick Lah. Last week, the SEC proposed amendments (PDF) to Rule 506 of Reg D to lift a long-standing ban on advertising for hedge funds and certain other investments in the United States. Over the course of the next few weeks, Reed Smith will be releasing … Continue Reading

Fund Managers and the Euro Zone Break Up

Click here for a discussion by Reed Smith partner Dale Gabbert on fund managers’ contingency plans in the wake of a potential euro zone break-up. This article, published yesterday on Reuters, includes commentary on the uncertainty of the current market place and highlights areas which managers should be thinking about as part of their euro … Continue Reading

FSA fines and bans Hedge Fund compliance officer

This post was written by Maria Wall. On 22 November 2011, the Financial Services Authority (“FSA”) publicised that it had fined Dr. Sandradee Joseph £14,000 and banned her from performing any significant influence function in regulated financial services for breaching Principle 6 of the FSA’s Statements of Principle for Approved Persons. … Continue Reading

Now they tell us – EU admits AIFMD may not be suitable for venture capital

On 1 July 2011, the European Union Directive on Alternative Investment Fund Managers (AIFMD) was published (PDF) in the Official Journal of the European Union and is now law. It is no secret that, since the European Commission first mooted the concept of a generic platform for regulating non-retail investment management in Europe, there has been strong criticism … Continue Reading

EU Financial Transactions Tax – The Battle Lines are Drawn!

In May 2011 the European Commission published the responses to a consultation paper (PDF) issued in February which asked the European Community to provide its views on the following: whether a new tax on the financial sector should be introduced; if so, what impact the tax would have; and how it should be designed and implemented? In its paper, … Continue Reading

At Least One Big Fish Enters the Murky Regulatory Waters of Social Media

This post was written by Amy J. Greer. While some have suggested that Morgan Stanley’s recent announcement that it will permit its financial advisors to take tentative first steps into the world of social media is nothing but a big yawn, given how fraught the social media world is with potential regulatory land mines, in … Continue Reading

Pension Schemes and Alternative Investments

Here is a link to an article published by Winston Penhall, on Pension Schemes and Alternative Investments, in Investment & Pensions Europe magazine earlier this month. Winston discusses how the key investment issues related to hedge funds and private equity funds differ from a legal perspective. He also considers the rationale for pension schemes obtaining a legal … Continue Reading

Fund updater

Readers of this blog will no doubt be aware that regulators and legislators worldwide are working manically to update their financial services legislation to conform to political agendas (rightly or wrongly) arising from the credit crisis. I thought that it may be useful to give you a reminder of a couple of the forthcoming changes that we’ll … Continue Reading

AIFM Directive – Happy to sit and wait in the sun?

The controversial European Alternative Investment Management Directive (AIFMD), finally adopted by the European Parliament last November, was originally expected to be published in early 2011, so triggering a two year period in which Member States would be required to get their rule books in order to ensure consistent fund management regulation across the EU. Five … Continue Reading

Welcome to our new Blog!

Well, Spring has arrived in London, and it’s back to the office after a long and rather eventful bank holiday weekend. It started with the new Duchess of Cambridge wowing the world with her wedding dress and finished with the news that the U.S. had finally got their most wanted man. These events rather overshadowed the other big news of … Continue Reading

Resolution of Failed Prime Brokers

Most lawyers in Europe advising investment funds and managers will have encountered an overwhelming uncertainty regarding “what happens next?” on September 15th 2008, when Lehman Brother’s UK prime brokerage business went into administration. While at the time there were some temporary measures to deal with the resolution of deposit taking banks (subsequently replaced by the … Continue Reading