Saturday 29th August 2015
NEWS: Friday, August 28TH: The Hong Kong Monetary Authority says it has granted a restricted banking licence to Goldman Sachs Asia Pacific Company Limited (GSAPCL) under the Banking Ordinance. GSAPCL, incorporated in Hong Kong, is a wholly-owned banking subsidiary of the Goldman Sachs Group, Inc. The number of restricted licence banks in Hong Kong is now 24 - Apple launched its first Australian dollar corporate bond issue, raising $1.2bn within two hours this morning. Strong demand for the US tech giant’s fixed and floating, four and seven year Kangaroo bonds saw the firm outstrip predictions it would raise between $500m and $1bn. Apple bonds are popular because the AA+ rated company is considered an ultra-safe investment, although yields are correspondingly low — about 3% on four-year bonds and about 3.8% on seven-year bonds - The European Securities and Markets Authority (ESMA) has published the responses received to the Joint Committee Discussion Paper on Key Information Document for PRIIPS. The responses can be downloaded from the regulator's website - Romania’s MV Petrom reportedly is planning a secondary listing on the London Stock Exchange. According to Romanian press reports, the local investment fund Fondul Proprietatea may sell a significant stake in the company via public offering on the Bucharest Stock Exchange and London Stock Exchange. OMV Petrom, with a current market capitalisation of €4.85bn has announced that it will ask its shareholders’ approval for a secondary listing in London. The general shareholders meeting is scheduled for September 22nd. Austrian group OMV, holds 51% of the company’s shares; other shareholders include the Romanian state, via the Energy Ministry, with a 20.6% stake, and investment fund Fondul Proprietatea, which holds 19%. The remaining 9.4% is free-float - Morgan Stanley (NYSE/MS) today announced the launch of a new fund, the IPM Systematic Macro UCITS Fund, under its FundLogic Alternatives plc umbrella. The fund provides exposure to IPM’s Systematic Macro strategy, which is based on IPM’s proprietary investment models that provide unique insights into how fundamental drivers interact with the dynamics of asset price returns. The FundLogic Alternatives Platform currently has more than $2.6bn in assets under management (as of 31 July 2015) and this latest addition expands Morgan Stanley’s offering of global macro strategies - Equities sold off hard this morning as continued pressure on Chinese stocks rippled throughout world markets. Chinese government intervention brought the Shanghai Composite back a positive close; but the question is now, has confidence eroded so much that the market will continue to depend on the government to prop it up? The other key element to consider today is the outcome of the debate in the German parliament on the Greek bailout. Last month, a record 65 lawmakers from the conservative camp broke ranks and refused to back negotiations on the bailout. The daily Bild estimated that up to 120 CDU and CSU members out of 311 might refuse to back the now-agreed deal. However, Chancellor Merkel is looking to secure support from the Social Democrats (SPD), Merkel's junior coalition partner, and the opposition Greens which will likely swing the final decision Greece’s way. However, a rebellion by a large number of her allies would be a blow to the highly popular Chancellor.

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Regulatory Update

Waiting for the SEC to Jumpstart U.S. Business? Instead, Why Not Jumpstart Your Own Business?

Thursday, 23 August 2012 Written by 
Waiting for the SEC to Jumpstart U.S. Business? Instead, Why Not Jumpstart Your Own Business? In April 2012, the U.S. Congress passed the Jumpstart Our Business Startups Act (“JOBS Act”), a law that would ease restrictions on marketing private funds to U.S. investors. It came with high hopes that U.S. regulatory requirements would soon be simplified in this area. Now those efforts may be stalled for the time being. This does not mean that your efforts to market into the U.S. should also be stalled. http://www.ftseglobalmarkets.com/

In April 2012, the U.S. Congress passed the Jumpstart Our Business Startups Act (“JOBS Act”), a law that would ease restrictions on marketing private funds to U.S. investors. It came with high hopes that U.S. regulatory requirements would soon be simplified in this area. Now those efforts may be stalled for the time being. This does not mean that your efforts to market into the U.S. should also be stalled.

By way of background, in the U.S. most private funds are offered to investors in reliance on an exemption from registration with the SEC that prohibits “general solicitations or general advertising.” The JOBS Act instructed the SEC to adopt rules eliminating the prohibition by the beginning of July. The SEC missed that deadline. More recently, the SEC scheduled a meeting for August 22 to consider the rules, but at the last minute the discussion was postponed until next Wednesday, August 29. In a subtle, but potentially impactful change to the meeting agenda, next week’s meeting will consider “whether to propose” (emphasis supplied) rules to eliminate the prohibition, as opposed to actually considering the rules themselves.
 
For the time being, the prohibition on general solicitations and general advertising remains.
 
However, according to a recent Citibank study, U.S. investors are the most active day one/early stage allocators and their allocation are over 50% larger than those from other regions. When entering into the U.S. market, non-U.S. advisers may have an advantage over U.S. emerging managers since many already have established track records.

Instead of waiting for the SEC to jumpstart U.S. businesses, why not jumpstart your own? U.S. advisers have successfully navigated the U.S. environment for years; you can too.

Deborah Prutzman

Deborah Prutzman is the founder and CEO of The Regulatory Fundamentals Group (RFG), a New York-based firm that designs and implements business and risk solutions for alternative asset managers and institutional investors. RFG's senior-led team employs a robust suite of tools, including practical alerts on new and potential industry developments and its powerful RFG Pathfinder® knowledge management platform which simplifies the challenges of operating in a regulated environment.  To learn more about The Regulatory Fundamentals Group call (212) 537-4058, email a representative at Information@RegFG.com or visit RegFG.com

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