Publications
R&W Insurance and Public Company Transactions
New York Law Journal
June 2022
When first introduced, Representations and Warranties Insurance (RWI) proved attractive to parties to private Merger & Acquisition (M&A) transactions primarily because it allowed sellers to reduce their exposure to post-closing indemnity obligations arising from breaches of representations and warranties by transferring some of the risk to the insurer. As the use of RWI has increased in private company transactions over the past decade, it has become more common for RWI to be used either as a complete substitute for a seller indemnity for breaches of representations and warranties (in the absence of seller fraud) or for the seller to retain only a nominal indemnity obligation capped at an amount equivalent to all or a portion of the retention under the RWI policy. More recently, RWI has become increasingly available as a risk mitigation tool for parties to public transactions.
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The US Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) have overhauled Form PF and private fund managers have until March 12, 2025, to begin reporting on the new Form. The changes to the reporting requirements mandated by the amendments to the Form (“Form PF Amendments”) will require substantial preparation by many managers.[1]
Alerts
The US Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) have overhauled Form PF and private fund managers have until March 12, 2025, to begin reporting on the new Form. The changes to the reporting requirements mandated by the amendments to the Form (“Form PF Amendments”) will require substantial preparation by many managers.[1]