EJF Investments Ltd Feb 18 Ruling Regarding Risk Retention Regulations (8051E)
14 February 2018 - 6:00PM
UK Regulatory
TIDMEJFI TIDMEJFZ
RNS Number : 8051E
EJF Investments Ltd
14 February 2018
FOR IMMEDIATE RELEASE
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES,
ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN THE
UNITED KINGDOM), AUSTRALIA, CANADA, SOUTH AFRICA, JAPAN OR ANY
OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DO SO.
14 February 2018
Ruling by the U.S. Court of Appeals regarding the Risk Retention
Regulations
Further to the ruling of the U.S. Court of Appeal for the D.C.
Circuit on 9 February 2018 which determined that open market U.S.
CLO managers are not subject to the risk retention rules per the
Dodd-Frank Wall Street Reform and Consumer Protection Act, EJF
Investments Limited ("EJFI" or the "Company") believes that this
ruling does not impact the Company's investment objective or
strategy. There is a period of 45-days during which the U.S.
government agencies may appeal the ruling.
One of the core investment objectives of the Company is to own
debt issued by small U.S. banks and insurance companies. These
institutions enjoy four tailwinds: (1) concrete deregulatory steps
taken by the Federal Reserve, the Trump Administration and
Congress; (2) rising interest rates; (3) corporate tax cuts; and
(4) deregulatory and market forces promoting industry
consolidation. Through its interest in an affiliate of EJF Capital
LLC ("EJF"), EJFI has the first right to purchase 5% of the
residual interest (or equity tranche) of securitizations sponsored
by EJF, with the option to purchase additional residual interests.
The diversified debt securities collateralizing these
securitizations are issued by small US banks and insurance
companies.
The Company's Investment Manager, EJF Investments Manager LLC,
has written a commentary on the ruling which can be found on the
Company's website at www.ejfi.com under 'Manager
Communications'.
-End-
ENQUIRIES
For the Investment Manager
EJF Investments Manager LLC
Peter Stage / Hammad Khan
pstage@ejfcap.com / hkhan@ejfcap.com
+44 203 752 6775 / +44 203 752 6771
For the Company Secretary and Administrator
Crestbridge Fund Administrators Limited
EJFInvestors.jsy@crestbridge.com
+44 1534 835 600
For the Broker
Henry Freeman / Gillian Martin
+44 20 3100 2000
About EJF Investments Limited
EJFI is a registered closed-ended limited liability company
incorporated in Jersey under the Companies (Jersey) Law 1991, as
amended, on 20 October 2016 with registered number 122353. The
Company is regulated by the Jersey Financial Services Commission
(the "JFSC"). The JFSC is protected by both the Collective
Investment Funds (Jersey) Law 1988 and the Financial Services
(Jersey) Law 1998, as amended, against liability arising from the
discharge of its functions under such laws.
LEI: 549300XZYEQCLA1ZAT25
Investor information & warnings
The latest available information on the Company can be accessed
via its website at www.ejfi.com.
This communication has been issued by, and is the sole
responsibility of, the Company and is for information purposes
only. It is not, and is not intended to be an invitation,
inducement, offer or solicitation to deal in the shares of the
Company. The price and value of shares in the Company and the
income from them may go down as well as up and investors may not
get back the full amount invested on disposal of shares in the
Company. An investment in the Company should be considered only as
part of a balanced portfolio of which it should not form a
disproportionate part. Prospective investors are advised to seek
expert legal, financial, tax and other professional advice before
making any investment decision.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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February 14, 2018 02:00 ET (07:00 GMT)
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