Anchin, Block & Anchin
Financial Services News

The Financial Services Practice Group Newsletter is published periodically by Anchin, Block & Anchin. A service for financial service companies, the Newsletter contains articles which are general in nature and based on sources which are believed to be authoritative. Specific applications would require consideration of all facts and circumstances by qualified professionals. The firm will be pleased to provide additional details upon request.



    This guide is designed to provide an overview of the latest thoughts in tax planning strategies and to review the broad range of planning opportunities available to financial services firms. Some of the topics we focus on include planning techniques related to wash sales, mark-to-market election, worthless securities, short sale loss planning, and other tax planning ideas.

    On July 31, 2013, the Securities and Exchange Commission (“SEC”) announced the adoption of rules intended to increase protection for investors by requiring additional reporting and audit requirements.


    On July 31, 2013, the Securities and Exchange Commission (“SEC”) announced the adoption of rules intended to increase protection for investors by requiring additional reporting and audit requirements.


    On Tuesday, July 30th, Anchin’s Financial Services Practice hosted a roundtable discussion discussing current industry topics and trends. With more than 70 financial services executives in attendance, the discussion was extremely lively and covered topics such as the JOBS Act, the 3.8% Medicare Tax, and and the current IRS initiative to audit hedge funds.


    On July 12, 2013, the IRS issued Notice 2013-43 (the “Notice”), extending the implementation dates by six months for many of the withholding and account due diligence requirements under the Foreign Account Tax Compliance Act (“FATCA”).


    Its official, Jumpstart Our Business Startup Act finally jump starts advertising for hedge fund, private equity firms and other private investment managers.


    The Hedgeweek USA Awards 2013 presented earlier this month in New York City brought together the leading names in the US hedge funds industry to celebrate the achievements of the best performing managers and service providers in 2012.


    Anchin, Block & Anchin LLP announced today that is has been named the Best North American Accounting Firm in the annual Hedgeweek awards. Anchin is the first three-time winner in this category.


    On January 17, 2013, the U.S. Department of the Treasury and the IRS have issued comprehensive final regulations implementing Foreign Account Tax Compliance Act (FATCA) information reporting provisions. Under FATCA, foreign financial institutions (FFIs) — including foreign banks, brokers, insurance companies and investment funds — must disclose to the IRS certain information about their U.S.-owned accounts.


    Jan. 4 (Bloomberg) -- Jeffrey Rosenthal, partner at Anchin, Block & Anchin LLP, discusses an increase in the regulation of hedge funds. Rosenthal talks with Bloomberg's Pimm Fox and Vonnie Quinn on Bloomberg Radio's "Taking Stock." (Source: Bloomberg)
    The Foreign Account Tax Compliance Act (“FATCA”) was included as part of the Hiring Incentives to Restore Employment Act (“HIRE Act”) of 2010 and requires foreign financial institutions (FFIs), including hedge funds and other pooled investment vehicles, to report to the Internal Revenue Service on the foreign holdings of U.S. taxpayers or face substantial penalties for noncompliance. The requirements have provoked an outcry abroad, particularly from dual citizens and expatriates, in addition to the financial institutions that are expected to comply. Some foreign banks reportedly have been reluctant to do business with U.S. customers, and some expatriates have renounced their U.S. citizenship.

    The SEC’s Office of Compliance Inspections and Examinations (“OCIE”) released an industry letter on Tuesday, October 9, 2012, specifically directed to senior executives or principals of newly registered investment advisers to introduce the National Exam Program (“NEP”) and explain the Presence Exams Initiative (“PEI”). An investment adviser is considered “newly registered” if it registered with the SEC after the Dodd-Frank Act became effective. NEP staff will directly contact you if your firm is selected for an examination.

    Anchin is featured in pages 16, 19-21

    On Tuesday, June 19th, Anchin’s Financial Services Practice hosted a roundtable discussion titled “Hitting The Financial Services Industry Where It Hurts.”

    Anchin, Block & Anchin LLP has been named the Best Accounting Firm in the United States in the annual Hedgeweek Awards announced June 28, 2012, at its award luncheon held in New York City.

    Due to the lackluster performance in the equity and debt markets in recent years, investments in hedge funds and other alternative investment vehicles are becoming increasingly attractive to retirement plan trustees and investment committees. At the same time, fund managers are eager to manage retirement fund assets since 1) there are a vast amount of assets being held in pension plans ($11 trillion dollars of plan money as of September 30, 20111) and 2) there is typically a long investment horizon for such assets. However, the Employee Retirement Income and Security Act of 1974, as amended (ERISA), the Internal Revenue Code of 1986 (IRC) and the Pension Protection Act of 2006 (PPA) create special issues for fund managers who manage ERISA plan assets.

    Anchin, Block & Anchin LLP has been named the Best North American Accounting Firm for the second year in a row in the annual Hedgeweek Awards announced this week.

    In order to conform to the requirements of the Dodd-Frank Act (“Dodd-Frank"), the Securities and Exchange Commission ("SEC") recently published its final rule amending the definition of an "accredited investor".

    On December 5, 2011, the Cayman Islands Legislature passed an amendment to the Mutual Funds Law which will require many previously exempted Cayman-domiciled master funds to register with the Cayman Islands Monetary Authority ("CIMA"). The new registration requirements, which are admittedly principally a revenue raising vehicle, are expected to become effective as soon as the Governor approves the amendment and it is published in the Cayman Islands Gazette.

    On October 21, 2011, the Financial Accounting Standards Board (“FASB”) issued a proposed Accounting Standards Update (“ASU”) which would amend the guidance in Topic 946 for determining whether an entity is treated as an investment company. The proposed ASU would also require an investment company to consolidate other investment companies and investment property entities (e.g. real estate holding companies) in which it has a controlling interest (e.g. fund-of-funds structure) and would require additional disclosures.

    Additional regulations under the Dodd-Frank Act (the “Act”) impacting advisers have been recently issued and more are expected to come. This alert summarizes highlights of these new regulations and focuses on the effects on an exempt reporting adviser.

    Crederian Fund Services announced that it has been selected by Integrated Investment Capital LLC to serve as the administrator for a recently launched specialty investment fund. The Fund will provide loans for qualified individuals desiring financing for the retention of their life insurance. This loan program is offered through Normandy Fund I, LLC (the “Fund”), with an affiliate of Integrated Investment Capital LLC as the managing member.

    Technology is a critical driver of the financial services industry. Better technology tools correlate with better financial products and services. Technology shapes the scope and quality of financial services; and system integration is a critical element of technology-enabled services. System integration represents a significant leap forward in the on-going technological evolution of the industry.

    Anchin, Block & Anchin LLP is pleased to announce the establishment of Anchin, Block & Anchin (Cayman) Ltd., to provide audit services to funds registered in the Cayman Islands. Anchin Cayman’s resident member is Philip Rankin, CPA.

    Crederian Fund Services LLC announced the launch of its operations in early summer providing full-service fund administration for the financial services community.