United States: New Form SLT Reporting Requirements In Effect For Certain Investment Advisers

Last Updated: October 10 2011
Article by Catherine M. Anderson and Jeffrey D. Collins

Effective September 30, 2011, the new Treasury International Capital (TIC) Form SLT is required to be filed by certain custodians, investment managers and investors. The first filing deadline will be October 24, 2011 for any reporting entity, including an investment adviser that has $1 billion or more of reportable securities as of the last business day of the reporting month. You should note that only aggregate data derived from Form SLT will be published and only in a manner that will not reveal individual responses.

Why is the Form SLT required?

The purpose of Form SLT is to collect information on cross-border ownership by U.S. and foreign residents of long-term securities for portfolio investment purposes. The instructions for the Form SLT state that information is needed for preparation of the U.S. Balance of Payments accounts and the U.S. international investment position, and in the formulation of U.S. international financial and monetary policies.

Who must report?

There are three categories of reportable entities: U.S.-resident1 custodians, U.S.-resident issuers2and U.S. resident end-investors3. These categories will include U.S. investment advisers and U.S.-resident funds (including those managed by non-U.S. investment advisers), including a U.S.-based feeder fund owning shares of an offshore-based master fund.

U.S.-resident custodians must report both U.S. securities that they hold in custody for foreign residents and foreign securities they hold in custody for U.S. residents.

U.S.-resident issuers must report all securities issued by the U.S.-resident issuer directly to foreign residents4 including (i) registered securities that are owned by foreign residents for which neither a U.S.-resident custodian nor a U.S.-resident central depository is used, (ii) book-entry securities that are held at a foreign-resident central securities depository, (iii) bearer securities, and (iv) shares or other equity interests issued directly to or placed with foreign residents (e.g.: a U.S.-based master fund issues shares to foreign feeder funds, or a U.S. fund issues limited partnership interests to a foreign person).

U.S.-resident-end investors (which include investment advisers and funds) must report all investments in foreign securities for their own portfolio or for the portfolios of their U.S. clients that are not held by U.S.-resident custodians.

It should be noted that it is expected that financial intermediaries (such as U.S. brokers and U.S. custodians) will do the majority of the reporting. To avoid duplication of reporting, U.S.-resident-end investors (including investment managers) are required to report only transactions and holdings that are not required to be reported by an intermediary. U.S.-resident-end investors (including investment managers) should contact their prime brokers and custodians to determine if that prime broker/custodian will be making the Form SLT filing with respect to any foreign securities. Foreign brokers/custodians will not have Form SLT reporting obligations because they are not U.S. resident custodians, however, so U.S.-resident-end investors (including investment managers) using foreign brokers/custodians will have to report those holdings themselves. In determining whether a U.S.-resident-end investor (including investment managers) falls under the $1 billion reporting exemption, the U.S.-resident-end investors should aggregate all of their reportable foreign securities, including directly held portfolio investments in funds and limited partnerships, that are not held by a U.S.-resident custodian in an account in the name of the end-investor. The foreign securities that are held by the U.S. resident-custodian on behalf of the end-investor should not be included in determining whether the end-investor fits under the exemption (however, all reportable securities issued by the end-investor directly to foreign investors should be included in the exemption calculation).

What are reportable securities?

Examples of reportable long-term securities with an original maturity of more than one year or no contractual maturity include: equity, debt, preferred and restricted stock, convertible bonds and debt with attached warrants, zero-coupon debt. The FAQs for the TLC SLT state that any long and short positions should not be netted and only the gross long position should be reported.

The following types of securities (together with others) are specifically excluded from the long-term securities definition: short term securities, bankers' acceptances, derivative contracts (including forward contracts to deliver securities), letters of credit, bank deposits, and annuities.

How must we report?

Form SLT must be submitted by the reporting entity with at least $1 billion in reportable securities to the Federal Reserve Bank, no later than the 23rd calendar day of the month following the month of reporting. The Form may be submitted electronically, by mail or fax. For 2011, the Form will be required only on a quarterly basis with the first submission due on October 24, 2011. The Form SLT filings will be required on a monthly basis starting January 31, 2012.
For a copy of Form SLT, its Instructions, Frequently Asked Questions and more information, please visit here.


1.A U.S. resident is any individual, corporation or other entity incorporated or otherwise legally established in the United States, including branches, subsidiaries and affiliates of foreign entities located in the United States. Residency of an entity is determined by the place of incorporation.

2.A U.S. resident issuer would include, among others, a U.S. based master fund which issues interests to a foreign feeder, or a U.S. limited partnership that issues interests to a foreign resident.

3.An end-investor is an entity that acquires or relinquishes securities for its own account (for trading, investment or any other purposes) or invests on behalf of others. An end-investor would include a fund manager, and a U.S. based feeder fund owning shares of an offshore master fund, among others.

4.A foreign resident is any individual, corporation, or other entity legally established outside the U.S., regardless of the actual center of economic activity of the entity. Individuals, including U.S. citizens, residing outside of the U.S. are foreign residents. Any corporation or other entity incorporated outside of the U.S., including affiliates of U.S. entities that are located abroad, are foreign residents.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions