The energy sector is as complex as the different forms of energy required to power our modern lives. According to the U.S. Energy Information Administration (EIA), “The May Short-Term Energy Outlook (STEO) remains subject to heightened levels of uncertainty because responses to COVID-19 continue to evolve. Economic activity has increased significantly after reaching multi-year lows in the second quarter of 2020. The increase in economic activity and easing of COVID-19-related restrictions have contributed to rising energy use.”
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At the moment, it seems Environmental, Social and Governance (ESG) investing is one of the most talked about subjects in the market. Asset Managers have to deal with investor questions, new regulations, national and international studies and reports, market research and an accompanying explosion in ESG data. Trying to stay on top of all of this can be a daunting prospect.
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In 2021, banks in the US must be setting the groundwork for meeting the January 2023 deadline for the Fundamental Review of the Trading Book (FRTB). This year, US regulatory agencies are expected to issue a notice of proposed rulemaking (NPR) that will include finalized rules for FRTB. This will be followed by a hypothetical portfolio exercise and comment period. Because of uncertainty arising from the COVID-19 pandemic, the exact timing of the publication date will be difficult to predict. However, the goal of meeting the 2023 deadline is viewed as a high priority given the need for consistency across jurisdictions in terms of both implementation timing and the capital framework.
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The most important lesson to learn from the recent GameStop event is the importance of risk management. But the point is not to try to forecast such an event. For the most part, GameStop being selected by the public for this wave of buying was more or less a random event. There are thousands of stocks that could have experienced the same thing—in fact, there are large stock price swings every day, just with less volume and publicity. Regardless of whether you are an individual or a large mutual fund, knowing if you have a “GameStop Candidate” in your portfolio is critical.
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Today’s environment and market volatility have prompted fund managers and investors to evaluate the tax implications of their portfolios. The dislocation of markets has created a dynamic that is more important than ever to monitor your portfolio from a tax perspective. In SS&C’s recent webinar 2021 Tax Outlook and Discussion – What you need to know our tax experts discuss what these outcomes mean for fund managers and their investors, along with rising tax trends among active portfolio managers.
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In April 2020, the Cayman Tax Authority (DITC) announced a new “CRS Compliance Form.” The expansion of requirements under the Cayman automated the exchange of information regime affecting all managers with funds domiciled in Cayman. With this new requirement comes various impacts and changes to Cayman CRS Compliance.
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In September 2019, the Securities and Exchange Commission (SEC) approved Rule 6c-11 under the 1940 Act, which will allow most exchange-traded funds (ETFs) to operate without the expense and delay of obtaining an exemptive order. The new rule provides greater flexibility to all issuers looking to launch new products filed as open-end funds in a streamlined approval process with a quicker time to come to the market. The new rule applies to both index-based and actively managed transparent ETFs. This rule cannot be applied to leveraged/inverse ETFs, unit investment trusts, master-feeder funds or share class ETFs.
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As discussed in our first blog of this series, as Paycheck Protection Program (PPP) loans grow and become a material part of a lender’s financials, questions continue to arise around the appropriate treatment for these loans. Part one of this blog series, focused on the right processes to track and report on these loans to the SBA and to investors, as well as GAAP considerations as it relates to accounting for these loans. Here, we will focus on the reserving considerations for PPP loans
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