Joey Endler – Global Investment Law Watch

Europe: Ireland’s New Participation Exemption – An Opportunity for Private Markets Asset Managers

Nov 07 2024

By: Shane Geraghty, Michelle Lloyd, and Sneha Thomas

The Irish Finance Bill 2024 will, with effect from 1 January 2025, create a new participation exemption for foreign dividends. This exemption will bring Ireland into line with the rest of the EU which has a similar exemption. It is specifically designed to benefit Irish-resident companies that receive foreign-source dividends. The development has been broadly welcomed and is particularly noteworthy for the asset management industry and investment funds engaged in cross-border investments.

The Fed’s Recent Interest Rate Cut: A Step in the Right Direction for PE Sponsors

Sep 24 2024

By: Ed Dartley and Jamie M. Robinson

On 18 September 2024, the Federal Open Market Committee lowered the benchmark federal funds rate by 50 basis points to a target range of 4.75-5%. While this is welcome news on many levels, we expect that in the coming months it will have a real and positive impact on private equity sponsors, and particularly mid-sized and smaller sponsors.

End of Summer Pool Party: CFTC Approves Final Rule Amending 4.7 Regulatory Relief for CPOs and CTAs

Sep 17 2024

By: Cheryl L. Isaac, Matthew J. Rogers, and Benjamin C. Skillin

On 12 September 2024, the Commodity Futures Trading Commission (CFTC) published a Final Rule impacting registered commodity pool operators (CPOs) and commodity trading advisors (CTAs) relying on the regulatory relief provided under CFTC Regulation 4.7. “Registration light,” as Regulation 4.7 is sometimes known, provides reduced disclosure, reporting and recordkeeping obligations for CPOs and CTAs that limit sales activities to “qualified eligible persons” (QEPs).

After Approval at DC District Court, Appeals Court Halts Trading Event Contracts Based on Election Outcomes

Sep 13 2024

By: Cliff C. Histed, Cheryl L. Isaac, and Wiley F. Cole

On 12 September 2024, the US District Court for the District of Columbia ruled in KalshiEx LLC v. CFTC that designated contract markets may list event contracts whose payouts are tied to the outcome of elections. The court’s order, which granted summary judgment to KalshiEx LLC (Kalshi), held that the Commodity Futures Trading Commission’s (CFTC) interpreted its own regulations too broadly and that registered derivatives exchanges such as Kalshi may offer election outcome event contracts for trading.

FinCEN Narrows the Final AML Requirements for Investment Advisers

Aug 30 2024

By: Richard F. Kerr and Jennifer L. Klass

On 28 August 2024, the Financial Crimes Enforcement Network (FinCEN) finalized regulations that add certain investment advisers (Covered Advisers) to the definition of a “financial institution” under the Bank Secrecy Act thereby requiring Covered Advisers to, among other things, establish anti-money laundering (AML) and counter-terrorist financing (CFT) programs and file Suspicious Activity Reports with FinCEN. The effective date of the new rules is January 1, 2026.

Europe: Central Bank of Ireland Changing Notification Procedure for UCITS and AIF Passporting Applications

Aug 29 2024

By: Gayle Bowen, Emma O’Dwyer, and Aoife Maguire

The Central Bank of Ireland (CBI) is changing the process for the submission of UCITS and AIF passport notifications and de-notifications.

The MNPI Is Coming From Inside the House

Aug 28 2024

By: Pablo J. Man and Lance C. Dial

On 26 August 2024, the SEC settled charges against an SEC-registered adviser for policies and procedures failures related to the misuse of material nonpublic information (MNPI) concerning its trading of collateralized loan obligations (CLOs). The adviser paid a US$1.8 million penalty.

Child’s Play: Congress Proposes Allowing Sandboxes for AI Within the Financial Services Industry

Aug 07 2024

By Matthew J. Rogers and Maxwell J. Black

A bipartisan group in the US Congress has introduced legislation that aims to foster artificial intelligence (AI) innovation within the financial services industry by creating regulatory sandboxes. This new bill marks a significant step toward a unified, nationwide framework for regulating AI in the financial services industry.

The Central Bank of Ireland Introduces Macroprudential Measures to Irish-Authorised GBP-Denominated Liability Driven Investment Funds

May 24 2024

By: Shane Geraghty, Michelle Lloyd, and Ruth Hennessy

The Central Bank of Ireland has introduced a macroprudential policy framework for Irish-authorised GBP-denominated liability driven investment funds (LDI Funds), to make them more resilient to shocks to UK interest rates.

NFA Announces Effective Date for New Compliance Rule 2-52 and Related Guidance Re: Member Questionnaire

May 22 2024

By: Clifford C. Histed, Cheryl L. Issac, Matthew J. Rogers, and Wiley F. Cole

On 20 May 2024, the National Futures Association (NFA) announced that its recently finalized Compliance Rule 2-52, related Interpretive Notice 9082 and amended Bylaw 301 will go into effect on 15 October 2024. NFA members will be required to submit their Member Questionnaire (formerly, the Annual Questionnaire) at least annually, and sometimes more frequently, as required by the NFA. If an NFA member’s business operations materially change rendering previously provided information inaccurate or incomplete, the NFA member will be required promptly to update its Member Questionnaire. While NFA members may use their discretion to determine what constitutes a material change, Interpretive Notice 9082 provides illustrative guidance on this point.

Author:Joey Endler