13 Annual Alternative Investments Seminar th

13th Annual Alternative
Investments Seminar
Current and emerging
regulatory issues
1
Updates from the SEC
'...continued
scrutiny by both
clients and
regulators, along
with demands for
additional
legislation,
accountability,
transparency, and
low-cost solutions
will continue to
challenge the
environment in
which asset
managers operate.‘
Asset managers: SEC and European regulators agree to share
information and cooperate on oversight - The SEC and the European
Securities and Markets Authority finalized a supervisory cooperation
agreement on July 18th to allow regulators to share supervisory information
about investment advisers doing business internationally.
OCIE sends new advisers a letter describing “presence exams” - On
October 9, 2012, the SEC’s OCIE posted an open letter to new adviser
registrants on its website, and its regional offices sent the same letter to new
registrants in the region. The OCIE letter describes what it terms its
“Presence Exams initiative” for these advisers.
The SEC proposes new rules to allow issuers making private
offerings to advertise - The “Jumpstart Our Business Startups Act”
(“JOBS Act”), enacted in early April of 2012, required the SEC to lift the
prohibitions on general solicitation and to allow issuers to advertise private
offerings, as long as all purchasers of such interests are accredited investors
(as already required). On August 29, 2012, the SEC proposed new rules to
implement the JOBS Act.
SEC staff provides guidance on the use of social media by advisers
- Reflecting the fact that many registered investment advisers and their
personnel use social media in various forms to communicate with existing
and potential clients and to promote their services, the SEC staff recently
issued a National Examination Risk Alert providing suggestions for
complying with the antifraud, compliance, and recordkeeping provisions of
the federal securities laws.
-Strategic imperatives for Asset
Managers
2
FS Regulatory Briefs
Nonbank SIFIs: Up next, asset managers - When the Financial Stability Oversight Council adopted its final rule last year
for designating nonbank financial companies as systemically important (i.e., as “nonbank SIFIs”), it made clear that the
Council was assessing whether certain asset management firms might also be included in its reach. The OFR issued a study
called Asset Management and Financial Stability (“Study”), which describes potential threats to US financial stability from
vulnerabilities of asset managers. This Brief provides the highlights of the Study, explains what the Study means for asset
managers as a practical matter, analyzes its key themes, and provides our view that a few asset managers will be proposed for
SIFI designation.
Expense practices for private fund advisers - For private fund advisers, the assessment and allocation of fees and
expenses is a key compliance risk area and deserves careful attention. Advisers to private funds, like other types of SECregistered advisers, will be expected to have institutional-type controls around fee calculations, cash wiring, and expense
allocations. This brief provides important information to assist hedge fund and private equity fund advisers in understanding
the general risks around expense practices, and creating and maintaining a sound control framework to address those risks.
From good to growth: Why institutionalizing hedge funds creates value for owners and investors - Hedge funds
are searching for ways to boost fund value, increase ROI, and ensure the sustainability of their businesses. In our view, few
have the level of institutionalization in place to succeed.
Advisers' key concerns on Form PF implementation - Through its Form PF work with several first-time filers, and a
recently conducted survey of private fund adviser clients, PwC has identified key trends and issues that are valuable to all filers
as the reporting requirement continues to phase in for registered private fund investment advisers. This Brief describes these
key concerns in detail, provides analysis of the survey, and suggests what filers should do.
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Hedge funds increase transparency to gain
investors’ trust
‘…a new
framework is
emerging that is
improving investor
protection. But this
evolution remains
a work in
progress…’
US hedge funds have significantly enhanced their transparency, controls and
infrastructure, helping to win the trust of institutional investors that is critical for
their future growth. Across the hedge fund value chain, a new framework is emerging
that is improving investor protection. But this evolution remains a work in progress,
with inefficiencies and areas for improvement yet to be addressed.
PwC explores how each member of the hedge fund value chain - manager, investor,
administrator, prime broker, auditor and director - are adapting to this new paradigm
and can strengthen trust in the sector.
-From black box to open book: US
hedge fund trust and transparency
From black box to open book: US
hedge fund trust and transparency
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A complex regulatory environment for Private
Equity firms
‘The complexity of
tax compliance is
growing and
compliance
activities are
intensifying…
In this
environment, PE
firms face new taxrelated challenges.’
In the aftermath of the global economic downturn, the private equity industry
continues to experience changes in the regulatory environment and tax laws, among
others.
This paper explores the issues of ongoing concern to PE firms as well as emerging
opportunities for the industry.
The hot topics highlighted are based on PwC’s experience in working with PE clients
and the areas of focus and the concerns expressed by CFOs of PE firms in roundtables
we have hosted in major US markets throughout the past year.
- Private equity: Current issues and
emerging opportunities
Private equity: current issues
and emerging opportunities
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Understanding AIFMD
The alternative investment fund manager’s directive
The Alternative Investment Fund Managers Directive, or AIFMD, is coming. Firms that are affected will need to make significant
changes to their structures, strategies and operations in order to comply with its provisions.
However, along with these changes comes an important opportunity for firms to get ahead of the competition. The winners will not
just be those who meet the deadline (being either July 2013 or July 2014 depending on activities), but those who have planned for
the changes efficiently in order to operate in a more competitive and profitable way.
Download specific reports:
AIFMD impact for Hedge
funds
AIFMD impact for Private
equity
EU’s AIFMD: Impact on US
Asset Managers – New regime
starts July 22nd
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PwC Global Private Equity Responsible
Investment Survey 2013
Better environmental, social and governance (ESG) management provides an
opportunity for the private equity (PE) sector to generate more value – more value for
their portfolio companies, for their investors and for society at large. We believe that
not only is there clear benefit in better ESG management, but also that it is possible
for the value to be quantified and communicated to investors, acquirers and wider
stakeholders.
PwC Global PE Responsible Investment Survey 2013
In 2013, we carried out the largest ever survey of the private equity industry’s attitude
to ESG issues in the PwC Global PE Responsible Investment Survey 2013. More than
100 PE houses in 18 countries responded, managing more than $860 billion of assets.
The PwC Global PE Responsible Investment Survey reveals a belief that ESG issue
management is valuable - whether it’s protecting value through managing risk, or
generating value by spotting opportunities.
Putting a price on value
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FATCA: The next chapter
Learn more about
how your firm will
be affected by
FATCA
What does the Cayman Islands IGA really mean for the asset
management industry? - This alert addresses FATCA and the recent
negotiation of the IGA between the United States and the Cayman Islands.
Through a series of FAQs, this alert describes what the Cayman/US IGA
means for the asset management industry by addressing some of the more
relevant implications of the Cayman/US IGA for asset managers based on the
IGAs signed to date.
Taking control of FATCA: Building effective internal controls and
processes to promote compliance and certification - This new
whitepaper from PwC's cross-disciplined Global Information Reporting
practice expands on an earlier report released in the winter of 2013 and
explores strategies for developing an effective FATCA governance,
compliance, and controls framework.
FATCA: A closer look at the final regulations and their
implications for asset managers (webcast) - The long-awaited final
Foreign Account Tax Compliance Act (FATCA) regulations have arrived and,
while much analysis still needs to be done, the US Department of the
Treasury and the Internal Revenue Service provided welcome relief on a
number of key issues for the asset management industry. Listen to this
webcast replay about how these changes may impact your organization and
implementation strategy for global compliance.
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Introducing…
PwC’s Regulatory Navigator App Version 2.0
Key features of PwC’s
Regulatory Navigator include:
We are pleased to announce that
Version 2.0 of PwC’s new
Regulatory Navigator App is
here and ready for you to install on
your iPad or iPhone!
The Regulatory Navigator App,
an innovation from PwC’s Financial
Services Regulatory practice,
delivers the first single-source
resource to help guide you through
the constantly changing, complex,
and often opaque financial reform
regulatory environment.
If you do not have an iPad or iPhone,
you can access PwC’s financial
services regulatory points of view on
www.pwcregulatory.com.
Download PwC’s
Regulatory Navigator
today—available in the
Apple App Store.
•
Dynamic timeline that you can
scroll and sort by key regulatory
dates and deadlines (which
includes links to the source
documentation, comment period
deadlines and final rule
effective dates)
•
Financial Services Regulatory
practice publications library
featuring thought leadership and
videos that is sortable by topic,
most viewed and most liked
•
Weekly regulatory ticker of the
latest regulatory developments
•
Customization by topic or
industry
•
Notifications about new
content available on the app as
frequently as you want
For more information, please contact your local PwC representative or Alison Gilmore
at [email protected].
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Learn more about how PwC can help
Please select among the following practice areas:
•
Alternative Investments Practice
•
Private Equity Practice
•
Financial Services Regulatory Practice
•
Consulting Services
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