Asia-pacific Journal of Law, Politics and Administration
| Volume 2, No. 2, 2018, pp 51-56 | ||
| Abstract |
FATCA, FDAP, and ECI Issues of the U.S. CLO Equity Holders
|
|
Abstract
On April 5, 2018, the District Court for the District of Columbia vacated the risk retention rule after the 2 April deadline for the agencies to appeal the decision had passed. As a result, open-market collateral loan obligations (CLOs) are now no longer subject to the risk retention requirement. Although it is possible that the agencies could request a review from the Supreme Court, this seems unlikely. Earlier on February 9, 2018, the U.S. Court of Appeals for the D.C. Circuit held that U.S. managers of CLOs are not required to retain a financial interest in the CLOs under the U.S. risk retention rules.