Alert to Broker-Dealers and Hedge Funds: SEC Charges Broker-Dealer with Naked Short-Selling Violations
im-report Debbie A. Klis · May 28, 2021
On May 19, 2021, the Securities and Exchange Commission (“SEC”) charged a broker-dealer, BTIG, LLC (“BTIG”), with repeatedly violating the (i) order-marking and (ii) locate provisions of Regulation SHO, in connection with more than 90 sale orders from a single hedge fund customer. Regulation SHO regulates short sales of securities and is aimed, in large…
Rimon Partner Debbie Klis Named Top 15 Corporate Attorney by EB5 Investors Magazine
news Debbie A. Klis · May 12, 2021
Rimon Corporate Partner, Debbie Klis, has been named a Top 15 Corporate Attorney by EB5 Investors Magazine. To be eligible for the award, distinguished attorneys needed to primarily draft offering documents for EB-5 financing. Award recipients were asked to share thoughts on trends in the EB-5 industry and on the issue of redeployment. On trends in the EB-5…
Latest News on ESG Regulations and Investing
im-report Debbie A. Klis · May 11, 2021
Environmental, social and governance (ESG) factors have become a key discussion point in the asset management industry, with many managers incorporating ESG considerations into the investment processes. In 2019, ESG investment funds increased by $70 billion while traditional equity funds saw an outflow of $200 billion. ESG investments continue to increase in comparison to “traditional” equity…
SEC Statement on Accounting for Warrants in SPAC IPOs is Causing Some Hands to Wring
im-report Debbie A. Klis · April 15, 2021
On April 12, 2021, the Securities and Exchange Commission (SEC) released a new interpretation, without notice or a comment period, which calls into question whether warrants issued by special purpose acquisition companies (SPACs) could continue to be considered equity instrument. The SEC’s new interpretation reveals a position that is contrary to widespread practice of classifying…
IRS Guidance Provides Flexibility for Disaster-Related Extension of OZ Working Capital Safe Harbor
im-report Debbie A. Klis · April 13, 2021
The Internal Revenue Service (IRS) will publish in April 14, 2021’s Federal Register a notice of proposed rulemaking for the opportunity zones (OZ) incentive that provides flexibility in the 24-month extension of the working capital safe harbor in the case of federally declared disaster areas. The proposed rule that would also provide requirements that certain…
New York’s Legislative Solution for LIBOR Adopted
im-report Debbie A. Klis · April 8, 2021
The New York State Legislature passed a statutory solution to reduce the risks associated with the transition away from USD LIBOR. New York Senate Bill 297B/Assembly Bill 164B (the “NY Bill”), proposed by the Alternative Reference Rates Committee (“ARRC”) and sponsored by New York Senator Kevin Thomas, was designed to solve transition issues for legacy…
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.…
New IBOR Fallbacks Take Effect for Derivatives
im-report Debbie A. Klis · March 1, 2021
New fallbacks for derivatives linked to key interbank offered rates (IBORs) have come into effect ensuring a viable safety net is in place in the event an IBOR becomes permanently unavailable while firms continue to have exposure to that rate. The fallbacks, published by the International Swaps and Derivatives Association, Inc. (ISDA), will be incorporated…
Bi-Partisan Legislation Introduced to Extend OZ Investment Period to 2028
im-report Debbie A. Klis · February 21, 2021
House of Representatives Propose Legislation to Extend the Opportunity Zone Tax Deferral for Two Additional years. The Opportunity Zones Extension Act would extend the capital gains tax deferral date to permit the deferral of capital gains until the end of 2028. This Bi-Partisan legislation is intended to attract additional private sector investment in underserved communities.…
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…