Since the last issue of our IM Update, we have also published the following separate Alerts of interest to the investment management industry:

Implications of the Argentina Debt Litigation for Foreign Sovereign Immunity 

July 30, 2014 

Foreign sovereigns have long assumed that the Foreign Sovereign Immunities Act (FSIA) provides them with substantial protection against litigants in United States courts. Although the immunity afforded by the FSIA has never been absolute, two recent developments in the Supreme Court of the United States – both involving the Republic of Argentina – have expanded plaintiffs’ ability to locate sovereign assets and force satisfaction of a judgment, notwithstanding the seemingly broad protections of the FSIA.

Ropes & Gray Private Investment Fund Update: July 2014

July 21, 2014

This Update summarizes recent legal developments of note affecting the private investment fund industry, including the following topics:

  • European Commission Decision Implicated the Parental Liability of Private Equity Funds
  • SEC Initiative Announced to Target Registered Investment Advisers Who Have Never Undergone Review
  • SEC Issues New Guidance to Clarify the Term “Beneficial Owner” in Bad Actor Rules
  • SEC Provides Guidance on the Definition of “Knowledgeable Employees”
  • SEC Charges Manhattan-Based Private Equity Manager with Stealing $9 Million in Investor Funds
  • SEC Announces Charges Against Arizona-Based Fund Manager in Expense Misallocation Scheme

New Credit Default Swap Terms to Be Implemented in September 2014

July 21, 2014

Earlier this year, the International Swaps and Derivatives Association Inc. (ISDA) published the 2014 Credit Derivatives Definitions (the 2014 Definitions). The 2014 Definitions introduce a new government bail-in Credit Event trigger for credit default swap (CDS) contracts on financial Reference Entities in non-U.S. jurisdictions and also modify the typical terms of sovereign CDS contracts in light of the debt crisis in Greece, by allowing a buyer of protection to deliver upon settlement the assets into which the Reference Obligation has been converted even if such assets are not otherwise deliverable. Further, they create a concept of a Standard Reference Obligation, which means that most CDS contracts on a given Reference Entity would have the same Reference Obligation, thereby increasing the fungibility of such CDS contracts. This alert discusses in more detail some of the material changes implemented with the 2014 Definitions.

Ongoing Obligations Under AIFMD for Non-EEA Private Fund Managers – Regulatory Reporting, Annual Investor Report and Investor Disclosures

July 15, 2014

The Alternative Investment Fund Managers Directive (the AIFMD) introduces new requirements for alternative investment fund managers (AIFMs) established in the European Economic Area (EEA) and non-EEA AIFMs that market their fund in an EEA state. This Alert focuses on the regulatory reporting, annual investor report and ongoing investor disclosures required under AIFMD. For a non-EEA AIFM, registering an intention to market in an EEA state triggers these requirements.

EMIR Reporting – Further Reporting Obligations Apply in August 2014

June 9, 2014

Beginning August 11, 2014, additional reporting requirements will apply under the European Regulation on Derivative Transactions, Central Counterparties and Trade Repositories (known as the European Market Infrastructure Regulation (EMIR)). Currently, all EU-established counterparties to over-the-counter and exchange-traded derivatives are required to report certain terms of their derivatives transactions to a trade repository. Starting August 11, 2014, all EU-established entities that are financial counterparties or non-financial counterparties that exceed the EMIR clearing threshold (NFC+s) will also be required to report certain additional information to a trade repository.