Sector developments and company hires

Securitisation stamp duty eyed
The UK government is introducing legislation within Finance Bill 2021-22 that provides a power to make stamp duty and stamp duty reserve tax (SDRT) changes relating to securitisations and ILS by secondary legislation. The power will be a freestanding provision and will allow HM Treasury to make regulations to provide that stamp duty or SDRT is not chargeable on transfers of securities issued or raised by a securitisation company or a qualifying transformer vehicle. It will also allow HM Treasury to make regulations to provide that stamp duty or SDRT is not chargeable on transfers of securities to or by a securitisation company.

There is currently no power to make such changes in secondary legislation, but the government is keen to ensure that the UK’s stamp duty and SDRT rules contribute to maintaining the country’s position as a leading financial services centre. Technical changes to allow UK securitisation and ILS arrangements to operate more effectively - for example, by reducing cost and complexity - may be more appropriately made by secondary legislation than by primary legislation. As such, this measure will increase the flexibility of the government in responding to the evolving nature of the securitisation and ILS markets.

The move follows the government’s consultation on reform of the taxation of securitisation companies (SCI 24 March).

In other news…

Global
Latham & Watkins has elected 44 associates to its partnership and another 39 associates have been promoted to the role of counsel, effective from 1 January 2022. Among the newly-elected partners is Patrick Leftley, who is a member of the firm’s structured finance practice, based in London. He advises banks and asset managers, fintech companies, consumer finance companies and early-stage businesses on a range of public and private securitisation and asset-backed financing structures across asset classes.

The promotions to counsel include Christopher Michail, who is a member of L&W’s structured finance practice, based in Los Angeles. He represents banks, BDCs, large financial institutions, borrowers and asset managers in complex financing transactions, including secured and unsecured credit facilities, leveraged acquisition financings and structured vehicle financings.

OHA acquisition
T. Rowe Price is acquiring Oak Hill Advisors (OHA), with the aim of scaling alternative credit capabilities worldwide. T. Rowe Price will acquire 100% of OHA’s equity, including over 300 employees and a total of US$53bn in capital across its private, distressed, special situations, liquid, structured credit and real asset strategies.

OHA will operate as T. Rowe Price’s private markets platform. The plan is for the firms to co-develop new strategies for T. Rowe Price’s wealth and retail channels and expand into alternative asset categories.