Entries tagged “transactional”
SEC Announces Enforcement Task Force Focused on Climate and ESG Issues
im-report Debbie A. Klis · March 10, 2021
On March 4, 2021, the SEC announced the creation of a Climate and ESG Task Force in the Division of Enforcement to led by Kelly L. Gibson, the Acting Deputy Director of Enforcement (the “Task Force“) The Task Force’s purpose is to better police the market, pursue misconduct, and protect investors, according to Kelly L.…
Taxation of Carried Interests is Reignited by Recent Congressional Bill
im-report Debbie A. Klis · February 17, 2021
Representatives Bill Pascrell (D-NJ), Andy Levin (D-MI) and Katie Porter (D-CA) released H.R. 1068[1] on February 16, 2021, known as the “Carried Interest Fairness Act” (the “Act”). The Carried Interest Fairness Act would tax carried interest compensation at ordinary income tax rates and treating it as wage income subject to employment taxes. Capital gains taxation…
Welcome News in Financial Circles: LIBOR Termination Extended Briefly
im-report Debbie A. Klis · December 2, 2020
On November 30th, LIBOR administrator, ICE Benchmark Administration (“IBA”), announced plans to ease worries surrounding LIBOR cessation with a brief extension to June 30, 2023. IBA’s intention is to cease publication (i) of 1-week and 2-month USD LIBOR at the end of 2021 and (ii) subject to compliance with applicable regulations, including as to representativeness, it…
ISDA IBOR Fallbacks Supplement and Protocol: What You Need to Know
im-report Robin Powers · November 19, 2020
I. Introduction In 2017, the UK’s Financial Conduct Authority (“FCA”) announced that it will not require the calculation and publication of interbank offered rates (“IBORS”) beyond 2021. The absence of a guaranteed IBOR after 2021 has triggered one of the largest and intricate challenges that financial markets have confronted to date. Trillions of dollars of…
Let the Fundraising Begin: SEC Harmonizes and Improves its Exempt Offering Framework
im-report Debbie A. Klis · November 5, 2020
On November 2, 2020, the Securities and Exchange Commission (“SEC”) voted to amend and simplify its rules governing private-offering exemptions under the Securities Act of 1933 (the “Securities Act”) to promote capital formation (the “Amendments”).[1] The SEC release included discussion of their intent to remain true to the key components of their mission, namely investor…
LIBOR Transition Developments: Fallback Supplement and Protocol to be Released October 23, 2020
im-report Debbie A. Klis · October 14, 2020
On October 9, 2020, the International Swaps and Derivatives Association (“ISDA”) announced that it will release the IBOR Fallbacks Supplement to the 2006 ISDA Definitions (“Supplement”) and the ISDA 2020 IBOR Fallbacks Protocol (“Protocol”) on October 23, 2020, which will take effect on January 25, 2021 (the “Effective Date”). The 2006 ISDA Definitions will include…
September 30, 2020’s LIBOR Hardwired Transition Date Has Arrived
im-report Debbie A. Klis · September 30, 2020
Today is the day that the New York Fed’s Alternative Reference Rates Committee (ARRC) recommended transition to a “hardwired” approach for LIBOR[i] successor provisions in U.S. dollar-denominated syndicated credit facilities takes effect. Henceforth, to the extent not already utilized, all new syndicated business loans should include ARRC-recommended (or substantially similar) hardwired USD LIBOR fallback language.…
New ESG-Related Regulatory Obligations for Private Funds
im-report Debbie A. Klis · September 21, 2020
The consideration of environmental, social and governance factors alongside financial factors in the investment decision-making process are increasingly popular ways for investors to evaluate companies and funds in which they may choose to invest. According to the most recent report from US SIF Foundation, investors held $11.6 trillion in assets chosen according to ESG criteria…
SEC Expands Pool of Eligible Private Offering Participants
im-report Debbie A. Klis · September 16, 2020
The Securities and Exchange Commission’s (SEC) recent expansion of the definition of “accredited investor” in the final rule (Final Rule) issued on August 26, 2020, allows people with professional knowledge, experience or certifications to qualify as accredited investors, which is a highly welcome step that is creating quite a buzz!! The Final Rule is particularly…
ARRC Releases Fallback Language for the LIBOR Transition
im-report Debbie A. Klis · July 2, 2020
The Alternative Reference Rates Committee (ARRC) released updated fallback language for new originations of U.S. dollar-denominated syndicated business loans that reference LIBOR and new variable-rate private student loans on June 30, 2020. The language is intended to address the disruption that could occur should the termination of LIBOR indeed occur at the end of 2021.…