As regulatory scrutiny intensifies and risk becomes increasingly difficult to manage, financial services firms have larger challenges to face. Anchin’s experts can provide the guidance needed to steer you down the right path. We advise our clients as they implement the latest investment strategies and utilize the most sophisticated financial vehicles providing the appropriate accounting and tax advice to meet their needs. Our services include ensuring full compliance in financial reporting, minimizing tax exposure, consulting on operations, regulatory registration, systems design, and technology solutions. It takes our team of experts who take the time to understand your firm’s tax and financial reporting needs to design strategic, growth oriented solutions.
Whether conditions are volatile or stable, bullish or bearish, nearly 300 hedge funds, mutual funds, broker/dealers and investment partnerships rely on Anchin. Whether they are looking for answers to questions concerning complicated issues, such as the structure of their fund offerings, allocation of realized and unrealized gains and losses, compensation of investment managers, tax treatment of contributed securities, or planning for the distribution of appreciated property and other withdrawals, Anchin is there to support them.
From small, entrepreneurial startups to established funds, Anchin provides high level, high touch service to financial services firms. We are the right sized firm for you – a mid-sized alternative to the Big 4, providing maximum value, senior level guidance and superior service.
To sign up for our Financial Services email list, click here.
- Investment funds
- Mutual funds and other registered funds
- Back office services and special procedures
- International taxation
- Analytical reporting
- Private equity
- Crederian Fund Services
- Anchin, Block & Anchin (Cayman) Ltd.
“I have worked with Jeff since I launched my hedge fund, Cramer Partners, in 1987. Back then few people knew what a hedge fund was – his understanding and experience with the investment world makes him and his firm an excellent choice for anyone considering starting a fund or mulling a change. Over these past 30 years, Jeff’s advice has been invaluable to me and my business ventures, the growth of my fund and the prosperity and peace of mind of my clients.”
-James J. Cramer, American television personality, former hedge fund manager, and best-selling author. Cramer is the host of CNBC's Mad Money and a co-founder of TheStreet.
Private equity firms of all sizes have continued to show a growing interest in middle market companies. An effective strategy in dealing with complex activities involved in the Mergers and Acquisitions (M&A) process is essential. With over 90 years of experience serving middle market companies, Anchin specializes in responding to the individual needs of private equity firms and portfolio companies. We know where the issues are and the importance of having a dedicated team by your side every step of the way. Our single-office firm allows for efficient access to all of our resources, enabling us to deliver consistently superior work to our clients in a timely manner. Our team of experienced professionals provides in-depth industry knowledge while recognizing that each transaction is unique.
The members of Anchin’s Private Equity Industry Group understand the complications involved in transitioning a newly acquired company to a professionally managed organization. Understanding your investment strategy and knowing your company and team members is one of our specialties. Our team has the pertinent skills and expertise to help you succeed.
Anchin’s Private Equity Industry Group’s expertise extends to many industries, including:
- Food and beverage
- Public relations and advertising
- Construction, architecture and engineering
- Services, transportation and logistics
- Consumer products
- Manufacturing and distribution
- Real estate
- Financial services
Research and Development
Does your company qualify for Research and Development (R&D) tax credits? The financial services industry is an essential component of the U.S. economy, providing liquidity to companies and individuals, responsible for safeguarding and investing assets, and providing insurance allowing businesses to take on additional opportunities in the marketplace. Innovation has long been considered a cornerstone of growth for the industry, leading to new products and processes including new trading applications, new online and mobile banking functionality and automation of previously manual processes. In addition, most companies in the industry have begun to place a greater emphasis cyber security, given the rise in detected incidents.
Anchin’s professionals understand the important role the financial services industry plays in keeping the U.S. competitive in an increasingly global economy. Our industry experience, attention to detail and expert judgment result in accurate, highly defendable tax credit calculations. Our dedicated team includes audit, tax and advisory professionals with years of experience identifying issues and solving problems for every type of business within the financial service industry’s subsectors, including:
- Banking and capital markets
- Asset management
Our financial services industry R&D team ensures that our clients benefit from all of the incentives available to them. Anchin helps clients assess their R&D tax credits at all phases of their business, from the time they first consider a new product, service or functionality (white space evaluation) and throughout the entire software lifecycle. We are particularly skilled and experienced at identifying qualifying projects and initiatives in each area of your business and are experts at examining and capturing all allowable expenses towards your company’s research credit.
Anchin works with clients interested in claiming the R&D tax credit for the first time and those who have difficulty meeting the contemporaneous documentation requirements needed to support their R&D claim. We also assist clients who have had a significant portion of their R&D claim disallowed, and those who need to reassess their R&D tax credit calculation because the nature of their business has changed.
Anchin, Block & Anchin (Cayman) Ltd.
In compliance with the requirements of the Cayman Islands Monetary Authority (CIMA), Anchin established an affiliate in the Cayman Islands, Anchin, Block & Anchin (Cayman) Ltd., to provide audit services to funds registered in the Cayman Islands.
The launch of the affiliate recognizes the fact that the Cayman Islands have developed in recent years into one of the most popular jurisdictions for offshore funds. Anchin´s New York office works closely with our affiliate to ensure that the same quality service is provided to those clients requiring an offshore auditor.
Anchin Cayman has been approved as an auditor by CIMA, the Cayman Islands Monetary Authority, the financial regulatory agency of the Cayman Islands.
With the depth and breadth of services provided by Anchin´s Financial Services Practice, it is clear why Anchin has emerged as a leader in providing auditing, accounting and tax services to the financial services community. The practice currently serves more than 400 investment funds, funds-of-funds, mutual funds, broker/dealers and investment advisers.
- More than 35 years of experience supporting the Financial Services community
- Innovative approaches to complex issues
- Customized client service
- Efficient and cost-effective audits
- Design and implementation of optimal tax positions
- Valuable advisory assistance to management
- Timely delivery and accessibility to partners
- State-of-the-art software packages
- Proprietary tax Schedule K-1
- Third party administration
- International expertise and reach
- Testimonial: Jim Cramer
"Over these past 30 years, Jeff’s advice has been invaluable to me and my business ventures, the growth of my fund and the prosperity and peace of mind of my clients.”
- R&D Tax Credits Case Studies: Financial Services
The following are two case studies which further illustrate the types of projects and activities that will potentially qualify for the R&D tax credit. The
- Anchin offers analysis of the 2017 Tax Cuts and Jobs Act in relation to the value of equity interestsJune 21, 2018
Hedgeweek highlights our analysis of how the 2017 Tax Cuts and Jobs Act will impact the value of equity interests, and why the potential impact could be very different than what many experts expect.
- Department of Commerce Form BE-12 Benchmark Survey of Foreign Direct Investments in the United States May be Required for U.S. Fund ManagersMay 22, 2018
Form BE-12 (Benchmark Survey of Foreign Direct Investments in the United States) is required to be filed every fifth year, in place of Form BE-15 (which is for annual reporting that falls outside of the five-year reporting). This Form is filed with the U.S. Department of Commerce’s Bureau of Economic Analysis (“BEA”). The next Form BE-12 filing is due on May 31, 2018 (June 30, 2018 if using the BEA’s e-file system).
- Did the Tax Cuts and Jobs Act of 2017 Increase the Value of Equity Interests?May 22, 2018
At first glance, a business or equity owner might conclude that the Tax Cuts and Jobs Act of 2017 (the “Act”) increased the value of equity interests by 20% upon its signing by the President. By cutting corporate level taxes, the value of any business would, on the surface, immediately rise. However, the answer is not so straightforward.
- Impact of the Recent Tax Reform on the Private Equity IndustryMay 15, 2018
The Tax Cuts and Jobs Act (the “Tax Act”), which was signed into law on December 22, enacted a broad range of changes with most provisions taking effect for tax years beginning after December 31, 2017. This alert summarizes some of the key (federal) tax provisions of the Tax Act affecting the private equity industry.
- Excess Business Losses: How Will This Affect You?April 17, 2018
The Tax Cuts and Jobs Act (TCJA) modified the existing tax law on excess business losses, which previously specifically limited only “Excess farm losses.” The TCJA expanded the law to limit losses from all types of business for taxpayers other than corporations. In other words, tax payers may not be able to fully offset business losses against other types of income, as in the past.
- Mnuchin: IRS will close S Corp carried interest “loophole”February 16, 2018
E. George Teixeira, Tax Partner in Anchin's Financial Services Practice, comments on the IRS' plan to issue guidance that would allow hedge fund managers to avoid new carried interest restrictions.
- SEC Announces 2018 Compliance Examination PrioritiesFebruary 16, 2018
As they have for many years, the SEC announced its 2018 Office of Compliance Inspections and Examinations (OCIE) examination priorities.
- Tax Cuts and Jobs Act Substantially Limits Meals and Entertainment DeductionFebruary 14, 2018
The 2017 Tax Cuts and Jobs Act introduced some significant limitations to the meals and entertainment deduction. The new law makes two major changes to the meals and entertainment rules, which can impact your business.
- Tax Court Ruling That Family Office Carried on a Trade or Business May Offer Tax Planning Opportunities February 5, 2018
On December 13, 2017, in Lender Management, LLC v. Commissioner, the U.S. Tax Court ruled that a family office, Lender Management, LLC (“Lender Management”), carried on a trade or business as an investment manager rather than as a passive investor and was therefore entitled to deduct expenses under §162 (“deductible above-the-line with no income limitation”) vs. §212 (“miscellaneous itemized deductions subject to the 2% of adjusted gross income (AGI) floor”).
- Tax Cuts and Jobs Act: Key provisions affecting Hedge Funds, Private Equity Funds and Other Investment Funds or Fund VehiclesJanuary 17, 2018
The Tax Cuts and Jobs Act (the “Tax Act”), which was signed into law on December 22, 2017, enacts a broad range of changes with most provisions taking effect for tax years beginning after December 31, 2017. This alert summarizes some of the key (federal) tax provisions of the Tax Act affecting managers of hedge funds, private equity funds and other investment funds or fund vehicles.
- Tax Cuts and Jobs Act Offers Favorable Tax Breaks for BusinessesDecember 28, 2017
The Tax Cuts and Jobs Act (TCJA), which was signed into law on December 22, contains a treasure trove of tax breaks for businesses. Overall, most companies and business owners will come out ahead under the new tax law, but there are a number of tax breaks that were eliminated or reduced to make room for other beneficial revisions. Here are the most important changes in the new law that will affect businesses and their owners.
- The Tax Cuts and Jobs Act Overrides the Tax Court Decision in Grecian Magnesite Mining While the IRS Seeks to Appeal the Same DecisionDecember 28, 2017
In a decision handed down in the summer, the U.S. Tax Court refused to accord deference to an Internal Revenue Service (IRS) administrative ruling treating the sale of partnership interests as the sale of assets the partnership uses in a U.S. trade or business, thereby subjecting the resulting gain to taxation as income effectively connected with a U.S. trade or business. The recently passed tax reform law overrides the Tax Court decision. Meanwhile, the IRS intends to appeal against the same decision.
- CFTC Suggests It Has Broader Jurisdiction Over Virtual Currencies, Including ICOsDecember 13, 2017
The Commodity Futures Trading Commission (CFTC) recently published a primer to educate the public on virtual currencies. In the explanation, the CFTC outlined its position regarding its role regulating virtual currencies. The primer suggests that the CFTC sees itself having jurisdiction over certain virtual currency transactions, including Initial Coin Offerings (ICOs).
- How the Senate Tax Bill Could Cost YouDecember 11, 2017
A provision in the Senate’s tax plan would take away an investor’s ability to specifically identify which stock shares they relieve when they go to sell their holdings. The provision would require investors selling a portion of a position in stock to sell their oldest shares first, also known as first-in-first-out, or FIFO. This provision is slated to take effect on stock sales starting on January 1, 2018 and is estimated to increase government revenue by $2.7 billion over the next 10 years. The House tax bill, released in early November 2017, did not address this topic.
- 2017 Financial Services Year-End Tax Planning AlertDecember 6, 2017
With Donald Trump in the White House and Republicans maintaining a majority in Congress comes the real possibility of some dramatic changes in tax law.
- U.S. Research and Development Tax CreditOctober 30, 2017
Yair Holtzman, Leader of Anchin's Research and Development Tax Credits Group, explains how the credit works and shares his findings on the impact of the PATH Act.
- Year-End Tax Planning for Businesses: Looming Tax Reform Creates Planning ChallengesOctober 30, 2017
As the end of 2017 approaches, the prospect of dramatic tax reform makes year-end tax planning especially challenging. In late September, the Trump administration and Republican congressional leaders unveiled their Unified Framework for Fixing Our Broken Tax Code. The framework proposes reduced tax rates for businesses as well as changes to a variety of business tax benefits. But there’s a great deal of uncertainty over when — and if — tax reform will be implemented and which proposals could make their way into possible new tax legislation.
- SEC Rules that Digital Assets Can Be Treated as Securities, Fall Under Federal Securities LawOctober 10, 2017
Since their launch, cryptocurrencies and other digital assets have operated in a regulatory grey area. Should they be treated as currencies? Securities? As something completely different? In a July report, the SEC clarified the situation and set a new precedent: Digital assets can be treated as securities and fall under federal securities law.
- Top Lessons from the 2017 SEC Cybersecurity ReportOctober 2, 2017
Cybersecurity continues to be a top priority for the SEC. They recently reviewed 75 firms, including broker-dealers, investment advisers, and investment companies, to see what the financial industry is doing well related to cybersecurity, as well as what needs to be improved. Firms should use this information to evaluate and improve their own protection of client data and be aware of these issues which the SEC will be on the lookout for during future inspections.
- Large Equifax Cybersecurity Breach Could Affect 143 Million People – Are You One Of Them?September 11, 2017
Last week, Equifax announced a large cybersecurity breach that compromised personal information of up to 143 million Americans. The breach, which occurred between mid-May and July was discovered in late July.
- Tax Court Refuses to Follow Rev. Rul. 91-32 in Grecian Magnesite Mining DecisionAugust 23, 2017
In a recent decision, the U.S. Tax Court refused to accord deference to an Internal Revenue Service (IRS) administrative ruling treating the sale of partnership interests as a sale of assets the partnership uses in a U.S. trade or business, thereby subjecting the resulting gain to taxation as income effectively connected to a U.S. trade or business.
- Proposed Carried Interest Bills Still AliveJuly 10, 2017
Earlier this year, we shared information with you about several proposed bills that would increase taxes due on investment performance allocations, commonly known as carried interest. Carried interest is the share of profits that fund managers receive in exchange for managing investments. The controversy over carried interest arises because the current tax rules allow managers to pay taxes on portions of the carried interest allocation at the (long term) capital gains rate rather than the higher tax rate that normally applies to ordinary income.
- SEC Clarifies Three Confusing Situations For The Custody RuleMay 25, 2017
The SEC’s Custody Rule continues to be a headache for registered investment advisers. The conditions are so unclear, it’s easy to inadvertently trigger custody rule violations. To help advisers adjust, the SEC recently issued clarification for three confusing situations under the rule.
- SEC Identifies Top 5 Compliance Issues Found in OCIE ExaminationsApril 6, 2017
Call it a wake-up call for registered investment advisers—the Securities and Exchange Commission (SEC) issued a Risk Alert, highlighting the top five compliance issues found in deficiency letters sent to SEC-registered investment advisers.
- Tax Update: Proposed Bill Closing Tax Loophole Could be a Boon for Connecticut; IRS Recent Audit Targeting Management Fee WaiversMarch 30, 2017
The Connecticut state legislature earlier this year proposed a bill that would slap a new 19 percent tax on investment management services fees, also known as “carried interest.” Similar bills are planned, or have been introduced, in other states including New York, New Jersey, Massachusetts and Rhode Island. The Connecticut bill would only be effective if similar bills are passed in these other states.
- Connecticut Bill Seeking 19% State Surcharge on Hedge Funds Has a TwistMarch 9, 2017
Bruce McGuire, president of the Connecticut Hedge Fund Association, was attending the Managed Funds Association annual meeting earlier this year in Miami when he started chatting with some of his colleagues about the potential impact of recently proposed legislation in Connecticut that would slap a 19 percent surcharge on hedge funds based in the Nutmeg State.
- 2017 SEC Examination Priorities Feature Three New Areas of FocusFebruary 2, 2017
As they have done annually for the last several years, the Securities and Exchange Commission has announced their Examination Priorities.
- As Curtain Falls on Deferral Era, Investment Fund Managers Brace for ChangesJanuary 25, 2017
This is not a test. It’s been a long time coming, but the deferral era is about to end. Not with a bang or a whimper, but investment fund managers are scrambling to ensure that any significant amount of pre-2009 deferred fees owed to them are payable during the next 12-13 months. Their livelihoods depend on it.
- Follow the Bouncing Ball: Newly Revised Cybersecurity Regulations Scheduled for March 1 in New YorkJanuary 17, 2017
Newly revised cybersecurity regulations for financial service companies in New York are scheduled to take effect March 1, 2017. The effective date for the new rules follows a two-month delay, as the New York State Department of Financial Services (“NYDFS”) made changes to the proposed regulation due to industry concerns.
- Preparing for Revised Form ADV Taking Effect in 2018December 29, 2016
Registered investment advisers have started to brace for 2017. They’re creating new offerings and expanding the breadth of their portfolios. However, investment advisers need to think well beyond next year, to the first quarter of 2018. Their livelihoods depend on it.
- Financial Services Companies Brace for New Cybersecurity RequirementsDecember 14, 2016
The New York State Department of Financial Services is taking the bull by the horns when it comes to how regulated financial services companies protect themselves and their customers from cyberattacks.
- 2016 Financial Services Year-End Tax Planning AlertDecember 5, 2016
With the election of Donald Trump and a Republican control of Congress, tax reform is expected.
- Anchin, Block & Anchin Recognized as Best North American Accounting Firm in Hedgeweek USA AwardsSeptember 23, 2016
New York-based Top 100 accounting and advisory firm Anchin, Block & Anchin LLP has once again been named the Best North American Accounting Firm in the annual Hedgeweek awards. This award reinforces Anchin’s status as a leader in the Financial Services industry.
- Net Worth Threshold for “Qualified Clients” Increased by SECJuly 28, 2016
The U.S. Securities and Exchange Commission (“SEC”) has decided to increase the net worth test threshold for “qualified clients” effective August 15, 2016.
- Chapter 1: Legal & tax structuringMay 16, 2016
Jeffrey I. Rosenthal, Partner-in-Charge of Anchin's Financial Services Practice explains some of the criteria for making fund structuring decisions.
- Financial budgeting: One chance to succeedMay 16, 2016
Jeffrey I. Rosenthal, Partner-in-Charge of Anchin's Financial Services Practice talks about planning a hedge fund launch.
- Anchin, Block & Anchin Recognized as Best Global Accounting Firm for Sixth Consecutive Year in Hedgeweek AwardsMarch 9, 2016
Top tier accounting firm Anchin, Block & Anchin LLP has received Hedgeweek’s Best Global Accounting Firm award for the sixth consecutive year.
- New Tax Audit Rules Constitute a Radical Change for PartnershipsJanuary 27, 2016
Late in 2015, Congress passed the Bipartisan Budget Act of 2015 (the Act), which includes a complete overhaul of the procedures that apply to Internal Revenue Service (IRS) audits of partnerships and limited liability companies (LLCs) taxed as partnerships and their partners.
- 2016 SEC & FINRA Exam PrioritiesJanuary 25, 2016
The Office of Compliance Inspections and Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) and the Financial Industry Regulatory Authority (“FINRA”) have released their Exam Priorities for 2016. Each of the regulators have organized their focus around a number of key issues.
- FinCEN Proposes Rules for Investment Advisers to Establish Anti-Money Laundering ProgramsOctober 16, 2015
On August 25, 2015, the Financial Crimes Enforcement Network (FinCEN) published a Notice of Proposed Rulemaking (the "Proposed Rule") that would require certain investment advisers registered with the U.S. Securities and Exchange Commission to establish anti-money laundering (AML) programs and report suspicious activity to FinCEN under the Bank Security Act (the "BSA").
- Cybersecurity AlertFebruary 10, 2015
This past week saw a flurry of alerts regarding cyber security from both the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) underscoring the emphasis on cybersecurity across all areas of the financial services industry for both institutions and investors.
- 2015 SEC Examination Priorities AnnouncedJanuary 20, 2015
Last week, the SEC announced its examination priorities for 2015. Three themes highlighted the areas of focus for the SEC’s Office of Compliance Inspections and Examinations ("OCIE"): Protection of retail investors and investors saving for retirement, assessing market-wide risk and using enhanced data analysis to identify those engaged in potential illegal activity.
- 2014 Financial Services Year-End Tax Planning AlertDecember 3, 2014
The November 4 midterm elections resulted in a shake-up on Capitol Hill that will put Republicans in charge of both the House and the Senate when 114th Congress convenes in January 2015. In the meantime, tax reform and tax extender discussions have taken a back seat to the election of party leaders in the House and Senate as well as leadership changes to the various tax-writing committees.
- Custody Rule Update: Guidance for SPVs and EscrowsJuly 14, 2014
The Division of Investment Management of the Securities and Exchange Commission (the "SEC") provided an Investment Management Guidance Update (the "Update") regarding the Custody Rule (Rule 206(4)-2) under the Investment Advisers Act of 1940, as amended (the " Custody Rule").
- Revenue Ruling 2014-18 – New Possibilities to Defer Offshore Compensation of Hedge Fund Managers and EmployeesJune 30, 2014
On June 10, 2014, the Internal Revenue Service issued a ruling holding that non-statutory (or nonqualified) stock options ("NSO") and stock-settled stock appreciation rights ("SARs") are not subject to Internal Revenue Code Section 457A ("Section 457A").
- SEC Announces Initiative Directed at Never-Before Examined Registered Investment AdvisersMarch 3, 2014
The Securities and Exchange Commission announced that its Office of Compliance Inspections and Examinations (OCIE) is launching an initiative directed at investment advisers that have never been examined, focusing on those that have been registered with the SEC for three or more years.
- SEC Examination Priorities for 2014February 12, 2014
The Securities and Exchange Commission’s (SEC’s) Office of Compliance Inspections and Examinations recently published the priorities of its National Exam Program (NEP) for 2014. Under this program, the SEC conducts examinations of registered entities, including broker-dealers, transfer agents, investment advisers, investment companies, the national securities exchanges, clearing agencies, self-regulatory organizations, municipal advisors, and others.
- FATCA – “Ready or Not” – Online Registrations Can be Finalized and SubmittedJanuary 23, 2014
Under the Foreign Account Tax Compliance Act (FATCA), withholding agents must withhold tax on certain payments to Foreign Financial Institutions (FFIs) that do not agree to report certain information to the IRS about their U.S. accounts, including the accounts of certain foreign entities with substantial U.S. owners. An FFI may agree to report certain information about its account holders by registering to be FATCA compliant.
- How Does Tax Reform Impact You?
The Trump Administration passed an intricate and complex tax reform bill just before the close of 2017, but what will this mean as we move
- The Financial Services Industry and the Research and Development Tax CreditNovember 1, 2015
The financial services industry is an essential component of the U.S. economy that provides liquidity to companies and individuals, is responsible for safeguarding and investing
- Pro Forma Financial Statements - 2017
Anchin Block & Anchin LLP Copyright © 2017
- A Conversation with Former Governor David PatersonJune 4, 2013
Photo Gallery for A Conversation with Former Governor David Paterson held at Club 101
- Anchin Webinar: Tax Reform Discussion - How will the Bill Affect You? Get the Answers; Not Just the FactsJanuary 12, 2018
In this recorded webinar, Anchin assembled a panel of top professionals from varying viewpoints, including Real Estate, Financial Services, Professional Services, Technology, and Private Client to have a Q&A session on the effects of the new tax reform.
- Hedge Fund Compliance: Best Practices September 6, 2016
What steps can hedge funds take, especially in the start-up phase, to set themselves up for success? Jeffrey I. Rosenthal, Partner-in-Charge of Anchin, Block &