HM Treasury Finalises Private Fund Changes to Limited Partnerships Act 1907

As previously reported, HM Treasury published on 16 January 2017, a draft Legislative Reform (Private Fund Limited Partnerships) Order 2016 proposing to amend the Limited Partnerships Act 1907 to introduce a new Private Fund Limited Partnership (“PFLP”) structure which will be available to private investment funds structured as limited partnerships, such as private equity and venture capital funds. It is designed to reduce the administrative and financial burdens which impact these funds under the current limited partnership structure.

On 31 March 2017, HM Treasury published the final legislative reform order to introduce the new PFLP.

The new order came into force on 6 April 2017.

The new legislation is available

FCA Publishes Form and Procedures for Qualification Under MiFID II Structured Deposit Transitional Arrangements

When it comes into effect on 3 January 2018, MiFID II (2014/65/EU)) will introduce new regulation of services in relation to structured deposits.

On 3 April 2017, to enable firms to rely on certain MiFID II transitional arrangements, the FCA published a form for firms to notify the FCA that they want to carry on certain regulated activities in relation to structured deposits after 3 January 2018. The notification form was made available on a new FCA webpage on structured deposits under MiFID II.

The transitional arrangements will permit firms that are authorised before 3 January 2018 to carry on one or more of the following regulated activities in relation to structured deposits:

  • Dealing in investments as agent.

  • Arranging deals in investments.

  • Making arrangements with a view to transactions in investments.

  • Managing investments.

  • Advising on investments.

These firms will not be required to submit a variation of permissions application to the appropriate regulator (the FCA or the PRA), provided that they submit a notification to the appropriate regulator before 3 January 2018.

The FCA states that it will aim to process notifications within 10 working days of receipt. Any firm that does not submit an application by 2 January 2018 will not be able to sell or advise on structured deposits after that date. It encourages firms to submit notifications early to ensure that the new investment type is reflected on the Financial Services Register from 3 January 2018, as it expects a large number of notifications.

FCA-authorised firms that do not currently have permissions to carry out these activities that wish to carry out any of them in relation to structured deposits should not use the notification form. These firms will need to submit a variation of permission application instead.

The news release is available

 

High Court Restrains Publication of Hedge Fund's Confidential Hedge Fund Information by News Media

The High Court has granted an interim non-disclosure order restraining the use of confidential documents provided by a hedge fund manager to potential investors or the use of information derived from the documents. The court granted the order against a news agency, a financial journalist working for the agency and an unknown person alleged to have leaked the documents or the information.

The application engaged section 12 of the Human Rights Act 1998 because it sought to restrain the defendants' freedom of expression protected by Article 10 of the European Convention on Human Rights. The court held that the claimant was more likely than not to show at trial that it was entitled to restrain publication in accordance with section 12.

The decision gives an illustration of the factors the court will take into account when considering the defence of the public interest in an application for an interim injunction to restrain an alleged breach of confidence by a media outlet in a financial services context.

Brevan Howard Asset Management LLP and others v Reuters Ltd and others [2017] EWHC 644 (QB), 28 March 2017