Treasury Department Announces Mandatory Survey of Foreign Ownership of U.S. Securities

Private fund sponsors should be aware that the U.S. Department of the Treasury has announced that it is conducting a mandatory five-year benchmark survey on Form SHL of foreign ownership of U.S. securities.  A sponsor who (i) manages a private fund or funds domiciled in the United States that have issued securities to non-U.S. persons with a value of $100 million or more in the aggregate as of June 30, 2019 or (ii) receives a notice from the Federal Reserve Bank of New York generally must file Form SHL by August 30, 2019.  Form SHL and instructions may be found here.

The data collected will be used by the U.S. Government in the formulation of international economic and financial policies and to provide aggregate information to the public on foreign investments.  The information may be used only for analytical and statistical purposes and is not accessible by the public. Failure by a sponsor to file Form SHL as required can result in a civil penalty of not less than $2,500 and not more than $25,000.