Most people think that Hart-Scott-Rodino (HSR) filings are only
for large corporations and market leaders. But that's actually
wrong. High net-worth individual are often caught in HSR filing
obligations. And when they miss a mandatory filing obligation, the
penalty can be over $43,000 per day.
High net-worth individuals who routinely receive stock bonuses
or dividends are especially likely to unwittingly fall into the HSR
net. Here's why.
The exposure
The HSR Act covers acquisitions of voting securities and most
assets, provided just a few basic tests are met. It applies even
when individuals are involved and even when there is not the
slightest anticompetitive issue.
The tests are:
