Proposed Merger Sets Off Possible Revisions To U.S. Code On Sovereign Wealth Funds

In a surprising development, as part of the reaction to the proposed merger of the U.S. Professional Golfers' Association and LIV Golf professional golf tours, Senator Ron Wyden, the Chairman of the Senate Finance Committee, has introduced two bills, the latter of which would repeal U.S. Code Section 892 for certain sovereign wealth funds.

What you need to know

• As currently drafted, the Section 892 bill would apply only to sovereign wealth funds that have over US$100 billion of assets and are organized in countries that either:
  • have neither a free trade agreement nor a tax treaty with the U.S., or
  • are designated by the Department of State as a "foreign country of concern".