Overview

On March 18, 2010, US President Barack Obama signed into law the
Hiring Incentives to Restore Employment Act (the "HIRE Act"). The Act
incorporates a number of revenue raisers, including provisions that will (i)
re-source "dividend equivalent" payments under certain equity swaps and
stock loans over stock of US corporations, (ii) impose stringent due
diligence and reporting requirements on non-US financial institutions in
respect of foreign accounts owned by certain US persons and US-owned
foreign entities, and (iii) affect certain obligations issued in bearer form by
both US and non-US issuers. The tax changes introduced by the HIRE
Act are very significant and will severely impact non-US persons,
especially financial institutions and funds.