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DOL Finalizes New Prohibited Transaction Exemption for “Investment Advice”, With Statement That Fiduciary Standard May Apply to IRA Rollover Guidance Wednesday, January 20, 2021
On December 18, 2020, the U.S. Department of Labor (the “DOL”) published in the Federal Register a final prohibited transaction class exemption (the “Exemption”) that allows “investment advice” fiduciaries to provide advice that affects their compensation and to engage in otherwise prohibited “principal transactions.” Importantly, the preamble to the Exemption (the “Preamble”) includes the DOL’s final interpretation of the “five-part test” for purposes of determining when IRA rollover advice constitutes fiduciary “investment advice.”
The Exemption (PTE 2020-02) is set to become effective on February 16, 2021. At this time, it is not yet clear whether the Biden administration will delay or revoke the Exemption.
Wednesday, January 20, 2021
The Cross-Border Payments Regulation (EC) No 924/2009 (CBPR) is the EU legislation that sets out the principle of equality of charges for intra-EU cross-border euro payments and corresponding national payments within an EU member state. CBPR has been amended by Regulation (EU) 2019/518 (Amending Regulation), which extends the equality of charges principle to any non-euro currency of an EU member state and inserts new transparency requirements on currency conversion charges. CBPR applied directly in the UK until 31 December 2020.
CBPR (as amended by the Amending Regulation) has, since 1 January 2021, been “onshored” into UK law following the end of the Brexit transition period, with amendments, and we refer to the UK’s implementation of CBPR in this alert as UK CBPR.
Wednesday, January 20, 2021
Last month, the SEC staff provided much-needed no-action relief allowing broker-dealers, subject to certain conditions, to treat family offices as institutional, rather than retail, clients for purposes of Regulation BI and Form CRS.
1 Without the relief, family offices not managed by a registered professional were deemed “retail customers” for purposes of Regulation BI and “retail investors” under Form CRS even though broker-dealers traditionally service such family offices as institutional accounts given their sophistication and assets under management. As such, broker-dealers providing services to such family offices, particularly broker-dealers that did not otherwise service “retail customers,” faced the difficult choice of (a) developing a burdensome Regulation BI program that did not apply for most of its client base, solely to address the potential application to family office clients or (b) not servicing family office clien
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Friday, January 15, 2021
AIFs in GIFT City permitted to undertake leverage, subject to satisfaction of prescribed conditions.
Co-investment in portfolio companies permitted by AIFs in GIFT City through segregated portfolio, provided the investment terms are not favourable than those offered to the common portfolio and appropriate disclosures are made in the placement memorandum.
AIFs in GIFT City permitted to invest in domestic AIFs, alongside other permissible investments.
Diversification limits under the AIF Regulations not applicable to AIFs in GIFT City, subject to appropriate disclosures in the placement memorandum
The International Financial Services Centre (“
IFSC”) in the Gujarat International Finance-Tec (“
GIFT”) City at Gandhinagar, Gujarat is all set to offer a competitive and collaborative environment to the fund management industry in India. The establishment of the IFSC Authority (“