Form SHC is due once every five years as part of a survey conducted by the U.S. Department of the Treasury regarding ownership of foreign securities by U.S. residents. The Form solicits information identifying foreign securities owned by U.S. residents. The Form is due on March 2, 2012 for the year ending December 31, 2011.
An adviser to hedge funds, private equity funds or other private investment funds may have to file Form SHC if its private funds that are organized in the United States own, in the aggregate, at least $100 million of foreign securities. A private fund adviser will also be required to file Form SHC even without meeting the foregoing threshold if instructed to do so by the Federal Reserve Bank of New York (FRBNY). Note that U.S. custodians, as well as U.S. residents that are not private funds or private fund advisers, have Form SHC reporting obligations as well.
For purposes of calculating $100 million of foreign securities, only gross long positions are included; short positions are not netted from long positions. Foreign securities maintained with U.S. custodians are not included, unless at least $100 million in foreign securities are maintained with a single U.S. custodian that is not also a U.S. central securities depository (such as the Depository Trust Company or FRBNY). Securities held by U.S. feeder funds in affiliated non-U.S. master funds are included, but “direct investments” are not included. A “direct investment” relationship exists when a U.S. resident owns 10% or more of the voting equity securities of an incorporated foreign business. Ownership of an interest in an offshore limited partnership does not carry voting rights; therefore, such ownership, even if greater than 10%, is included.
If you need assistance with your filing or with determining whether you are required to file, or if you have been contacted by FRBNY about your filing, please let us know.
Form SHC, including filing instructions, can be found here.