Legal & Regulation

By John Roche, Partner, PwC – Whilst everyone no doubt has their own view of the financial crisis, what is clear is that its knock on effect has been dramatic. »

The Securities and Exchange Commission SEC has published on its website a request for public comment on the feasibility, benefits, and costs of two short selling disclosure regimes as a part of a study mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act. »

The Australian Securities and Investments Commission has released new regulatory guidance and relief aimed at achieving better disclosure by parties that are engaging in securities lending of substantial holdings in listed entities. »

New compliance requirements arise in November this year for many UK finance industry firms, including hedge fund managers, dealers, traders, stockbrokers and some financial advisers. For the first time, it will be mandatory to record mobile telephone conversations, in a bid by the Financial Services Authority (FSA) to crack down on market abuse. »

On Friday 1 April, the Court of Appeal handed down its much awaited written judgment in Westford Special Situations Fund Limited v Barfield Nominees et al. The decision has far reaching consequences, not only for BVI funds, but also for all types of BVI corporate vehicles, according to BVI law firm, Harneys which acted for Westford in the matter. The case directly and indirectly dealt with four major issues:- »

The recently announced changes to Regulation 28 of South Africa's Pension Funds Act, which are effective from 1 July this year, could result in an eight times surge in assets under management in the hedge fund space. »

The final version of the guidance on anti-bribery policies and procedures was issued by the Government (pursuant to section 9 of the Bribery Act) today (Wednesday, 30 March).  The Act will come into force on 1st July 2011. »

The Financial Industry Regulatory Authority (FINRA) has expelled MICG Investment Management, LLC (MICG) of Newport News, VA, and barred Jeffrey A Martinovich, the firm’s CEO and majority owner, for securities fraud, misusing investors’ funds and causing false account statements to be issued to investors in connection with their management of a proprietary hedge fund named MICG Venture Strategies, LLC (Venture Strategies). »

In an open letter of March 8, 2011 addressed to the Chair of the Economic and Monetary Affairs Committee of the European Parliament, Sharon Bowles, and Pascal Canfin, the Committee’s Rapporteur on the draft EU regulation on short selling and credit default swaps, EDHEC-Risk Institute has warned of the dangers of prohibiting “naked” sales of sovereign credit default swaps. »

The Securities and Exchange Commission (SEC) has charged a Bay Area hedge fund manager with concealing more than USD12 million in investment proceeds that he owed investors in his fund. »