Publication

"Investment Management and Related Practices: Compendium of Articles Published in 2016"

Throughout 2016, Stroock's Investment Management practice and our related interdisciplinary practice areas published several articles of interest to industry participants.

These publications include a detailed article on the SEC's highly-anticipated proposed rulemaking governing the use of derivatives and financial commitment transactions by funds and BDCs, two related articles on the SEC's focus on business continuity and transition planning by registered funds and investment advisers, and an introductory article on the last set of key investment company rulemakings in 2016 governing liquidity risk management, reporting modernization and swing pricing. In addition, investment advisers (especially their compliance departments) may be interested in the article on the SEC's recent enforcement actions against wrap fee program participants. Finally, funds with commodities exposure or that invest in offshore investment vehicles may be interested in an article by our tax group covering a new revenue procedure and proposed IRS regulations that could affect a fund's ability to satisfy the gross income and asset diversification tests under the Internal Revenue Code.

Our private funds group published several useful articles, including one on FinCEN's new anti-money laundering rules, which expanded customer due diligence requirements for banks, broker-dealers, mutual funds, futures commission merchants and introducing brokers. Another article highlighted the SEC's enforcement action against a private equity fund sponsor for improperly acting as an unregistered broker-dealer. Other articles include an update on the Fed's recent announcement detailing the procedures for banking entities to qualify and apply for an extension of the deadline for divesting interests in "illiquid funds" under the Volcker Rule.

Our ERISA group published on the Department of Labor's long-awaited adoption of a revised definition of an "investment advice" fiduciary and accompanying exemptions, and also published on the treatment of affiliated private funds as a "controlled group" for joint and several liability purposes under ERISA. Our commodities and derivatives group published on the CFTC's rulemaking governing swaps, focusing on the implementation of a framework for margin requirements for uncleared transactions, including their cross-border application. Finally, there is a brief article with guidance on the annual affirmation requirements for funds and advisers operating under exemptions from CPO and CTA registration.

Other articles focused on the ongoing implications of the 2010 Dodd-Frank Act on whistleblower cases, final IRS regulations governing the definition of "real property" for REITs, FINRA review of pre-dispute forum selection clauses, a U.S. Supreme Court decision on "tippee" liability for insider trading and implications of the Presidential election on the CFPB.

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