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A highlight of some of the SEC’s regulatory initiatives for the past year. Medium-to-smaller advisers are already having a difficult time with the cost of compliance. An overview of the liquidity management regulatory rule proposal, a FinCEN proposal and cyber security risk alert.

Highlights of the DOL’s proposed fiduciary duty definition. If adopted as proposed, it will have a far reaching impact on investment advisers’, broker-dealers’ and, potentially, plan administrators’ business practices related to ERISA plans including 401(k) plans and IRAs.

The IRS has clarified the disclosure requirement for basket option contracts and basket contracts. Affected taxpayers must file Form 8886. New to Notice 2015-73 are procedures for changing the method of accounting for transactions within the scope of the notice.

Under the SEC’s compliance program rule a federally registered investment adviser is required to appoint a CCO to be responsible for that program. Combined with the SEC’s efforts to closing the examination period gap, this will impact registered investment advisers who are not up-to-speed.

FASB Accounting Standards Codification Topic 810 Consolidation establishes criteria for analyzing entities for consolidation when preparing financial statements in conformity with GAAP. Determine whether the Fund is a variable interest entity. Consolidation for investment managers.

Since the Economic Stimulus Act took effect, hedge funds have returned positive every year except 2011. The Economic Stimulus Act also gave banks the ability to generate a significant amount of capital and fostered a decline in unemployment. What's ahead for hedge fund managers?

Capital fundraising is one of the most important and challenging tasks faced by alternative investment fund managers today.  For many managers, it is the hardest part of their job.  Current economic conditions and the vast array of investment products competing for investor attention have made the process of attracting new capital into private funds increasingly difficult.

Private equity funds that take an active participation in the management of their investee companies could be considered trade or business under the ERISA rules. Private equity funds need to perform due diligence prior to making investments. More on Private Equity Fund pension liabilities.

Info for private equity funds preparing for FATCA. Timeline and an action plan for funds preparing for FATCA. Private Equity Fund managers have these methods for becoming FATCA compliant. FATCA terms that all fund managers should be familiar with.

The Net Investment Income Tax creates some variances for the hedge fund industry and brings to light additional distinctions between a trader fund and an investor fund for tax purposes. Proposed regulations provide guidance for the Net Investment Income Tax that becomes effective for tax years after 12/31/12. The net investment income tax consists of 3 broad categories of income.

IRS ruling clarifies fund managers’ ability to use certain tax-deferred stock rights. Background on IRC section 457A and Revenue Ruling 2014-18. The Ruling may finally offer a solution for hedge fund managers that have been searching for ways to defer off-shore compensation.

Partnerships required to issue Schedule K-1 of Form 1065 to their partners by the due date of the partnership tax return, including extensions. The IRS's Revenue Procedure 2012-17 describes the procedures that partnerships must follow if they electronically deliver Schedule K-1 of Form 1065.  For additional information about form 1065 and Schedule K-1, contact our Tax Services group.

 A just-released IRS-published ruling may influence how compensation is paid in the future to hedge fund managers and employees of hedge fund managers with respect to offshore funds and exempt investors.

At the U.S. Real Estate Opportunity & Private Fund Investing Forum panelists were asked if they were running into more real estate funds in the secondary and tertiary markets. Learn more about what type of capital is available and the cities that excited the panelists.

Revenue recognition changes and impact to investment advisors and the investment companies they manage. Revenue recognition changes may require increased investment in reporting systems and/or alter cost structures associated with financial reporting. Implementation, assistance and next steps.

The GIPS standards recommend that investment management firms obtain independent 3rd party verification. AICPA Auditing Standards Board issues Statement of Position Reporting Pursuant to GIPS. More information on GIPS Standards and the statements issued by the AICPA Auditing Standards Board.

Private Equity Funds And OID Rules. Private equity funds should consult professional advisors familiar with OID rules at the time of loan origination, permitting negotiations and documentation at the time of investment. For more information on private equity funds and OID rules, contact our financial services team who specializes in services for private equity funds.

FASB issues accounting standards update balance sheet disclosures about offsetting assets and liabilities. The increased disclosure requirements could significantly impact private investment funds and broker-dealers. This article covers offsetting requirements under U.S. GAAP and the new disclosure requirements of ASU 2011-11.

Due to the financial crisis, many fund managers are now accepting investments from ERISA plans to help boost assets under management. In the past, ERISA plan sponsors would frequently report on Form 5500 that the fund manager had filed a Form 5500 as a Direct Filing Entity. The DOL now has a program to match the reporting on the ERISA plan sponsor’s Form 5500.

FASB issues an accounting standards update concerning fair value measurement. Disclosure requirements in U.S. GAAP and IFRS. The ASU clarifies that the application of premiums and discounts in a fair value measurement is related to the unit of account for the asset or liability being measured. For more information on the accounting standards update and fair value measurement.