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dbRemarket private equity and hedge fund auction platform gains QMS designation

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Deutsche Bank’s Trust & Securities Services (TSS) unit has received Qualified Matching Service (QMS) designation from the Internal Revenue Service (IRS) for its dbRemarket platform.

The IRS recently confirmed in a private letter ruling that dbRemarket meets the requirements for a qualified matching service (QMS) under US Treasury regulation § 1.7704-1(g).

dbRemarket, which provides investors in private equity and hedge funds with a transparent way of effecting the purchase or sale of partnership interests in the secondary market, was launched in June 2011. Partnership interests that transfer via dbRemarket will qualify for the QMS safe harbour, which increases the percentage of interests that can be transferred during a fund’s taxable year from 2% to 10%.

“By being designated a QMS, Deutsche Bank’s dbRemarket platform offers peace of mind to those fund managers who are concerned with compromising their partnership’s tax status through secondary transactions. The use of a QMS-designated service significantly lessens the risk of being classified as a publicly traded partnership,” says Rob Sandt, Director and Head of Auction Services, Deutsche Bank.

The dbRemarket platform builds on the TSS business’s experience of more than 20 years in conducting auction agency services through Deutsche Bank AG and its affiliated banks, during which time it has conducted over 570,000 auctions of 4,300 individual securities over the past two decades.

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