Regulatory reform for off-shore jurisdictions

Since the onset of the financial crisis, there has been a big push for financial reform in the U.S. as well as within the European community.  This session addressed the pursuant changes in off-shore regulations and the effect these changes may have on private equity funds heading out of Brazil.  The basis of the discussion focused on two particular types of regulation:

-   the regulation of investment advisors: there is currently in place a private adviser & non-U.S. adviser exemption which waives registration for funds with fewer than 15 clients (defined as individuals with whom there is a direct advisory relationship) and in management of $25mm or less

- tax regulation: the Foreign Account Tax Compliance Act of 2009 is targeted at the evasion of taxes by U.S. taxpayers who place their assets in off-shore accounts.  The Act requires non-U.S. financial institutions to fully disclose select information concerning U.S. individuals who hold accounts at those institutions