The European Securities and Markets Authority has issued guidelines that state portfolio managers should be based in the member state where their funds are incorporated, an apparent contradiction to the Undertakings for Collective Investment in Transferable Securities, which let a fund be incorporated in one state and managed elsewhere. The guidance is seen as a move to curb domiciling of funds for tax purposes in states such as Luxembourg and Ireland and looks likely to benefit competing centers, including Paris and Frankfurt, Germany.
Hedge funds and other major investors have moved to net-long positions on the Canadian dollar, an abrupt reversal after record short positions two months earlier, according to the US Commodity Futures Trading Commission. A weakening US dollar and a Bank of Canada interest-rate increase have buoyed the Canadian dollar.
The Council of the EU has updated a prospectus regulation to lighten small and midsize enterprises' administrative requirements for accessing financial markets. The revision addresses areas including form of publication, cases of exemption and risk factors.
The Financial Stability Board's Analysis of Central Clearing Interdependencies asserts central counterparties should be considered systemically important and "too big to fail." This would require CCPs to undergo stress testing, to make a living will and to have greater liquidity reserves to deal with a crisis, Financial InterGroup President Allan Grody writes.
As part of its fiduciary rule review, the Labor Department is looking into whether fixed-indexed annuities should remain under the best-interest contract exemption, Timothy Hauser, the agency's deputy assistant secretary for program operations, said during a call with the National Association of Insurance Commissioners. All options related to fixed-indexed annuities are on the table during the review and "[w]e're interested in whatever feedback we get on what to do," he said.
Republican Securities and Exchange Commission member Mike Piwowar said in a letter to the Labor Department that its new fiduciary rule is misguided and should be scrapped. He said the Labor Department made a mistake when it dismissed the important part SEC-mandated disclosures play in protecting investors from conflicts of interest.
The Pension Benefit Guaranty Corp. published a notice in the Federal Register asking for the retirement plan industry's views on what regulatory and deregulatory issues it should take up. The pension insurer said it is particularly interested in the question of whether "tools such as regulatory safe harbors" can help plans and sponsors meet compliance obligations.
Although overhauling the tax code is critical to boosting the economy and giving relief to the middle class, Congress should preserve Section 1031 like-kind exchanges to allow deferral of capital gains on real estate investments, writes Anthony Chereso, president and CEO of the Investment Program Association. Like-kind exchanges allow taxpayers to invest and reinvest in real estate across the country and also help create thousands of jobs.
President Donald Trump reiterated his vow to overhaul the tax code to lower corporate taxes and give tax breaks to middle-class Americans during an interview with The Wall Street Journal. "The people I care most about are the middle-income people in this country, who have gotten screwed," Trump said. "And if there's upward revision it's going to be on high-income people."
Blackstone Real Estate Income Trust has set its net asset value for Class S and Class I shares at $10.29 and $10.28, respectively. Meanwhile, Blackstone's Class D shares have an updated NAV per share of $10.26, with Class T shares receiving an updated NAV of $10.17 each.