Kramer Levin’s Funds Talk provides legal commentary on the news and events that matter most to asset managers and funds.
Topics covered in this issue include:
SEC Updates ‘Fund of Funds’ Rules for Registered Investment Companies, Business Development Companies
The Securities and Exchange Commission has streamlined the rules applicable to “fund of funds” arrangements. Under the new rules, five conditions apply to funds looking to buy another fund’s voting securities beyond the threshold set by the Investment Company Act.
DOJ Cyber-Digital Task Force Renews Focus on Cryptocurrency Enforcement
The task force recognizes the “breathtaking possibilities” that distributed ledger technologies present for society, but points out the many ways in which cryptocurrency has facilitated criminal activity, and reminds crypto exchanges and kiosks of their regulatory obligations. Much like other regulated peers, these entities must register with FinCen, submit suspicious activity reports, conduct and record KYC due diligence, and comply with the Bank Secrecy Act.
IBOR Transition: What’s the Protocol for Derivatives?
In connection with the anticipated discontinuance of LIBOR and similar benchmarks, the International Swaps and Derivatives Association (ISDA) has published the 2020 IBOR Fallbacks Protocol (Protocol) to help market participants deal with the orderly amendment of their swaps and other agreements referencing affected benchmarks. This alert describes the functioning of the Protocol, the amendments made via supplement to the 2006 ISDA Definitions commonly incorporated into swap transactions, and the main issues market participants will have to consider when deciding whether to adhere.
Pandemic Legislation: Lessons from the U.S. Terrorism Response
In this article for NU Property 360°, Corporate partner Daniel A. Rabinowitz examines how the COVID-19 pandemic has prompted a debate on the limits of what private insurance, private industry and the taxpayer can or should be expected to absorb, just as with the Sept. 11, 2001 attacks.
What to Tell Your Investor Limited Partners (or Stockholders or LLC Members)
A Delaware Supreme Court case provides authoritative guidance on the duty of disclosure of management to stockholders, limited partners and members of limited liability companies.