Skip to main content
Date

Tags:

Rule
Item 4(b), Item 5
Staff
Ty Carson
Response/Comments

If the hedge fund or partnership pays the individual interest or dividends, then that is reported in Item 5.

If a natural person does not have an entity they control, they may provide a SOP stipulation in Item 4(b).

Question

From: Carson, Timothy

Sent: Wednesday, June 14, 2017 5:28 PM

To: [Redacted]

Cc: Walsh, Kathryn E.; Gillis, Diana L.; Whitehead, Nora; Berg, Karen E.; Sheinberg, Samuel I.; Shaffer, Kristin

Subject: RE: Item 5 response for a natural person

[Redacted],

If the hedge fund or partnership pays the individual interest or dividends, then that is reported in Item 5.

Regards,

Timothy (Ty) Carson

From: [Redacted]

Sent: Tuesday, June 13, 2017 5:21 PM

To: Carson, Timothy

Cc: Walsh, Kathryn E.; Gillis, Diana L.; Whitehead, Nora; Berg, Karen E.; Sheinberg, Samuel I.; Shaffer, Kristin

Subject: RE: Item 5 response for a natural person

Dear Ty:

In a filing by an individual, I understand that item 5 reflects interest and dividend income, not capital gains or employment revenue( assuming he or she does not control any other entity that derives revenue).

If the individual invests in a hedge fund or partnership that he/she does not control, would any revenue from such investments be reflected?

I believe that if there are no distributions, but that the “account value” is just reflected in reports to the individual, there would be no income to report from that activity.

Is there any other revenue that should be reported?

Thank you.

[Redacted]

From: Carson, Timothy [mailto:tcarson@ftc.gov]

Sent: Wednesday, May 31, 2017 10:17 AM

To: [Redacted]

Cc: Walsh, Kathryn E.; Gillis, Diana L.; Whitehead, Nora; Berg, Karen E.; Sheinberg, Samuel I.; Shaffer, Kristin

Subject: RE: Item 4b

Yes, stipulate in response to item 4(b) in this situation.

Timothy (Ty) Carson

From: [Redacted]

Sent: Tuesday, May 30, 2017 5:02 PM

To: Walsh, Kathryn E.; Gillis, Diana L.; Whitehead, Nora; Berg, Karen E.; Sheinberg, Samuel I.; Carson, Timothy; Shaffer,

Kristin

Subject: Item 4b

The instructions to Item 4(b) note that a natural person should not supply personal balance sheets or tax returns. But, if a natural person does not have an entity they control, what would they provide, if anything, in response to 4(b)—just a stipulation?

[Redacted]

About Informal Interpretations

Informal interpretations provide guidance from previous staff interpretations on the applicability of the HSR rules to specific fact situations. You should not rely on them as a substitute for reading the Act and the Rules themselves. These materials do not, and are not intended to, constitute legal advice.

Learn more about Informal Interpretations.