In another entry of blockchain into a new operational realm, Northern Trust’s announcement that it has installed the first functioning blockchain for private equity funds administration has been drawing a lot of attention. Yet that’s no guarantee that institutional investors in private equity funds or other fund administrators will be enamored with the idea. say investment, operations, […]
Alternative Funds Industry Tackles Data Culture
Chief data officer (CDO) may not the most sought-after position at hedge fund management shops, but that isn’t stopping the C-level executives from pushing hard to create a better data management culture — including finding someone to take on the role, with or without the title. To support this effort, a new group calling itself the Data […]
Dole Class Action Ruling: Short-Selling Clawback Next?
US brokerage and bank operations and compliance managers will soon have to face an onerous back-office and legal challenge — figuring out how to make short sellers pay back $2.74 plus interest for each share of Dole Foods shorted more than three years ago. That money would be used to compensate beneficial investors who are considered the […]
ADR Lawsuits: Depositary Banks on the Hotseat
When it comes to their handling of American Depositary Receipts, depositary banks have more than just an investigation by the US Securities and Exchange Commission to worry about. BNY Mellon, Citi and JP Morgan are being targeted with class action lawsuits filed in a New York court by disgruntled investors, alleging overcharges in foreign exchange […]
Pre-Release ADRs: More SEC Fines on the Way?
First ITG. Who is next? That is the question fund managers and other investors are asking themselves after learning that the US Securities and Exchange Commission fined broker-dealer ITG $24.4 million for violating regulations on how it used the pre-released shares of American Depositary Receipts (ADRs). The SEC says that ITG violated Section 17(a)3 of […]
Blockchain’s Smart Contracts: What’s Smart, What’s Not
Can smart contracts be made smart enough to be accurate, ensure the right balance between confidentiality and transparency, and reach widespread acceptance? Yes, but not without a lot more work. That is the consensus of a group of blockchain developers, advocates and analysts that spoke and attended a recent event held by the Wall Street Blockchain […]
Making Every Proxy Vote Count is Hard Work
An investor casts its vote at an annual or other corporate meeting, but has no way of knowing whether it was actually received and counted. It could be rejected or even partially accepted, which defeats the purpose of casting the vote in the first place. While the US Securities and Exchange Commission has left market […]
No Shortcuts Reimbursing NAV Errors Says SEC
The US Securities and Exchange Commission’s recent $3.9 million settlement with social investment manager Calvert Investment Management highlights the operational challenges — and potential legal liabilities– faced by mutual fund companies that must equally compensate all investors for any errors in net asset value calculations . It isn’t enough to make a best effort. Fund […]
Europe’s PRIIPs: When Being Clear Isn’t All That Easy
Fund managers, banks and insurance firms can now breathe a collective sigh of relief, but not for long. The European Commission has just announced that it has postponed by one year the implementation date for new legislation requiring financial firms to more clearly explain the risks and rewards of some investment products that fall under […]
Equity Derivatives Withholding Tax Remains Taxing (Updated)
(Editor’s Note: On November 14, 2016 SIFMA asked the US Treasury to postpone the implementation date of IRS Section 871(m) from January 1, 2017 so that it can resolve a difference of opinion with G5 countries. The UK, Germany, Spain, France, and Italy have told the Treasury that dividend equivalent payments made outside the US […]