Sat, Feb 25, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Private Equity Strategies

Regs Watch: Brief Updates on Changes in Regulation for Private Equity

Thursday, December 20, 2012

Links and brief updates on changes to the regulatory landscape for private equity, including: new guidelines on valuation, international taxes, and fund liabilities..

A journalists like me and lawyers have written ad nauseum, new and ever more regulations are in the pipeline for private equity and alternatives as a whole. Here we will hit on some of the cases of note and provide links to new guidance over the past month.

Bribery is Still Bad:

The US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have released updated guidance on the Foreign Corrupt Practices Act. Basically, bribery is still a bad idea, but now there's a fact sheet for easy cross referencing, if someone offers you a bribe

National Gas Fuel Company Withdraws its Own Suit:

National Fuel Gas Company, has withdrawn its own lawsuit after a shareholder proposal submitted by the Harvard Shareholder Rights Project, on behalf of a public pension benefit trust, sought declassification of the company's board of directors. The company withdrew citing procedural issues surrounding the proposal.

Court Sides With Private Equity on ERISA Liability:

The Federal District Court of Massachusetts sided with Sun Capital Partners over withdrawl liability in the case involving the New England Teamsters & Trucking Industry Pension Fund. "Specifically, the court found that the PBGC had incorrectly applied the law of agency by attributing activities of a private equity fund's general partner (which had provided certain management and advisory services to the fund's portfolio companies for a fee) to the fund itself,” explain attorneys with Hunton & Williams.

New Tax Rules in Luxembourg Focus Specifically on Private Equity:

The Luxembourg Parliament has approved the bill 6497 modifying the Luxembourg Income Tax Act. The changes will impact private equity firms, including increases to the alternative minimum tax for Luxcos. The alternative minimum tax rules will apply now even if the income is exempt under international law. Detailed guidance is offered here by attorneys with Bonn Steichen & Partners.

German AIFMD Tax Regime Implementation Hits Private Equity:

From a tax law perspective, UCITS funds and a limited range of tax privileged AIFs will be granted the favorable existing fund tax law regime. However, the draft legislation would bring about - prohibitive - product regulation, first via regulatory law and second via tax law, for a large number of AIF like many hedge funds and private equity funds. According to the latest InfoLetter from WTS Steuerberatungsgesellschaft mbH, in Germany, private equity funds operating there are likely facing new scrutiny and higher tax bills.

SEC Settles First-of-its-Kind Asset Valuation Case

The SEC has opted to settle with KCAP Financial, Inc., f/k/a/ Kohlberg Capital Corporation, over misstatements of exit prices and fair value. The number of these such cases are on the rise, two others closed this month.

 
This article was published in Opalesque's Private Equity Strategies our monthly research update on the global private equity landscape including all sectors and market caps.
Private Equity Strategies
Private Equity Strategies
Private Equity Strategies


Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Legal - Fannie, Freddie shares dive after U.S. appeals court ruling[more]

    From Reuters.com: Shares of Fannie Mae and Freddie Mac tumbled more than 30 percent on Tuesday after a U.S. appeals court shut down efforts by hedge funds and other investors to pursue numerous legal claims accusing the U.S. government of seizing their profits following taxpayer bailouts. By a

  2. Institutional investors plan to raise allocations to alternative assets in 2017[more]

    Komfie Manalo, Opalesque Asia: A survey by Context Summits Miami showed that nearly 72% of institutional investors and family offices plan to raise their allocations to alternative asset managers this year, suggesting continued strong demand for the industry. "As many large, brand name f

  3. Comment - Mortgages, mergers and hedge fund fees, Fairholme's Berkowitz responds to court ruling against hedge fund suits of Fannie Mae[more]

    Mortgages, mergers and hedge fund fees From Bloomberg.com: Yesterday the U.S. Court of Appeals for the D.C. Circuit handed down an odd decision in a lawsuit over the government's nationalization of Fannie Mae and Freddie Mac. The key issue is what's called the "Third Amendment," the 2012

  4. Investing - Hedge funds continue to chase the herd in record Momentum wager, Marshall Wace bets grocer Sainsbury may need rights offering, Hedge fund net exposure has started to retreat, David Tepper's Appaloosa fund makes a huge buy, The 10,000-mile journey to Short Australia, Skeptical hedge fund investors grill Evan Spiegel about Snap's I.P.O.[more]

    Hedge funds continue to chase the herd in record Momentum wager From Bloomberg.com: Hedge funds can't get enough of momentum - even if it means embracing an investing strategy they hate. Loosely defined as betting on shares that went up the fastest over the preceding nine-to-12 months, h

  5. Opalesque Exclusive: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s