Holland & Knight - Effective September 30, 2011, the new Treasury International Capital (TIC) Form SLT is required to be filed by certain large investment advisers. The first filing deadline will be October 24, 2011, for any investment adviser that has $1 billion or more of reportable securities (defined below) as of the last business day of the reporting month (to the extent not filed by the account’s or fund’s custodian).
Generally the reports relate to accounts of non-U.S. investors with U.S. investments and U.S. investors with non-U.S. investments.
U.S. investment advisers and fund managers must report:
1) All securities issued by their U.S. Funds directly to foreign residents, including e.g., a U.S. master fund issuing shares to foreign feeder funds, or a U.S. fund issuing limited partnership interests to a foreign person; and
2) All investments in foreign securities for their own portfolio or for the portfolios of their U.S. clients or U.S. Funds.
IMPORTANT: Any U.S. custodian for the above accounts has primary filing responsibilities. Accordingly, it is expected that U.S. financial intermediaries (such as U.S. brokers and U.S. custodians) will do the majority of the reporting. You should coordinate with your custodian to avoid duplicate reporting.
U.S. investment advisers using foreign brokers/custodians will have to report those holdings themselves.
In determining whether a U.S. adviser falls under the $1 billion reporting limit, the adviser should aggregate:
1) All of its U.S. clients’ and U.S Funds’ reportable foreign securities, including directly held portfolio investments in foreign funds and foreign limited partnerships, that are not held by a U.S.-resident custodian, plus
2) All securities issued by such adviser’s U.S. funds directly to foreign investors (without a U.S. custodian).
Long and short positions should not be netted and only the gross long position should be reported.
The following types of securities are specifically excluded from the reportable securities definition: short term securities, bankers’ acceptances, derivative contracts (including forward contracts to deliver securities), letters of credit, bank deposits and annuities.
Form SLT must be filed with the Federal Reserve Bank, no later than the 23rd calendar day of the month following the month of reporting. The form may be submitted electronically, by mail or fax. For 2011, the form will be required only on a quarterly basis. The Form SLT filings will be required on a monthly basis starting Jan. 31, 2012. Treasury has stated that the contents of individual filings will be held confidential.