Rimon

Chinese Companies Listed on US Exchanges must Disclose Potential Risk Associated with Potential Government Interference According to an SEC Official

IM Report Chinese Companies Listed on US Exchanges must Disclose Potential Risk Associated with Potential Government Interference According to an SEC Official Debbie A. Klis · July 27, 2021

On July 26, 2021, a senior U.S. Securities and Exchange Commission official, Allison Lee, advised that Chinese companies listed on U.S. stock exchanges must disclose the potential risks associated with the Chinese government interfering in their businesses, as part of their normal reporting requirements. The genesis of SEC’s comment is believed to be the recent…

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Alert to Broker-Dealers and Hedge Funds: SEC Charges Broker-Dealer with Naked Short-Selling Violations

IM Report Alert to Broker-Dealers and Hedge Funds: SEC Charges Broker-Dealer with Naked Short-Selling Violations 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…

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Latest News on ESG Regulations and Investing

IM Report Latest News on ESG Regulations and Investing 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…

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Regulating The Wild West of Cryptocurrencies: A Primer on New York BitLicenses

IM Report Regulating The Wild West of Cryptocurrencies: A Primer on New York BitLicenses Niccolo Barber · May 6, 2021

As the market for cryptocurrency continues to mature, institutional investors and asset management firms are increasingly embracing the asset class. Companies that are considering entering the cryptocurrency space should be aware of an important business license for virtual currency activities issued by the New York State Department of Financial Service, (the “DFS”), commonly referred to…

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SEC Statement on Accounting for Warrants in SPAC IPOs is Causing Some Hands to Wring

IM Report SEC Statement on Accounting for Warrants in SPAC IPOs is Causing Some Hands to Wring 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…

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IRS Guidance Provides Flexibility for Disaster-Related Extension of OZ Working Capital Safe Harbor

IM Report IRS Guidance Provides Flexibility for Disaster-Related Extension of OZ Working Capital Safe Harbor 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…

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New York’s Legislative Solution for LIBOR Adopted

IM Report New York’s Legislative Solution for LIBOR Adopted 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…

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“Family Office”? What’s In a Name: The Implosion Heard Around the (Financial Markets) World

IM Report “Family Office”? What’s In a Name: The Implosion Heard Around the (Financial Markets) World Robin Powers · April 7, 2021

What Can We Expect from the Regulators? Robin Powers, Partner, Rimon, P.C. Archegos Capital Management’s collapse last week, and the resulting losses for several global banks, has and will impact financial markets for the foreseeable future. Regulatory efforts will likely focus on the ever-expanding shadow banking sector and shed light on its transparency (or lack thereof) and…

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New Regulation Crowdfunding Rules Come into Effect

IM Report New Regulation Crowdfunding Rules Come into Effect Niccolo Barber · March 17, 2021

In 2012, the Jumpstart Our Business Startups (“JOBS”) Act introduced Regulation Crowdfunding (“Reg CF”) to the regulatory framework governing exempt offerings, enabling eligible companies to offer and sell securities through crowdfunding.  The JOBS Act was created to ease securities regulations and to encourage the private funding of U.S. small businesses by reducing costs associated with…

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Digital Asset Risk Alert

IM Report Digital Asset Risk Alert Geoffrey Perusse · March 12, 2021

The SEC’s Office of Compliance Inspections and Examinations recently published a risk alert related to investment advisers managing Digital Assets for their clients, either directly or indirectly through pooled investment vehicles.  The risk alert makes it clear that digital assets create a number of unique compliance challenges that firms should consider. Based upon risks identified…

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