Prohibited foreign entity rules

"The bottleneck is always getting the first deal through the finish line for new issues. Once there is familiarity with the risk, the market responds quickly."

"PFE is a major threshold issue for tax insurance underwriters at this time — this is because it is not one that creates a partial loss, rather a project will be in or out and could be a total loss... We have heard about advisors willing to write it, but have yet to see anyone actually doing so. That is the chicken-and-egg problem we are in right now."

"Our general approach is a smell test — confirm that publicly available documents and at least some internal documentation do not show red flags. We are not just taking a counterparty's word for it, but we are realistic that we will never have all the documents."

"A signed certification is an important starting point — and often necessary if you are relying on the certification safe harbor — but it is not the end of the analysis. The standard is asking whether it was reasonable to rely on that certification — that is a process question, not a document question."

“What observers sometimes underestimate about the industry is the degree of expertise and professionalism that exists within it — by and large most participants are very sophisticated and very knowledgeable and see compliance as a core component of their overall responsibility as market participants. The responsibility of others is to ensure that the rules are clear and that they can be followed."

“I think the important signal from the notice is that the dominant framework across the market is tier-one supplier accountability.”

"What I have not seen enough discussion of is the recapture provision within §48E. The statutory language is broad and the provision looks onerous... The market has not fully grappled with the scope or what mitigation looks like. The best approach is to start raising awareness, and ensure clients can get out in front of it as early as possible."