A global regulatory practice focused on the needs of asset managers
Dechert’s global financial services group is a leading legal advisor to asset managers, investment funds and fund directors. Group members, working out of 15 Dechert offices in the United States, Europe, Asia and the Middle East, represent clients ranging from start-up boutique operations to some of the largest financial institutions and fund groups in the world.
Unlike many competitor firms, our practice is built around the needs of asset managers rather than banks or other financial institutions. Our lawyers advise on:
- Regulatory and compliance matters related to the formation and ongoing management of all asset classes including open- and closed-end funds, exchange-traded funds, offshore funds, UCITS and hedge funds.
- Compliance under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), Volcker Rule and Federal Reserve Board’s (FRB) Merchant Banking Rules.
- Europe’s new Markets in Financial Instruments Directive (MiFID II) legislation, effective January 3, 2018, and its impact on both EU investment funds and asset managers as well as U.S. counterparts doing business globally.
- Alternative Investment Fund Managers Directive (AIFMD), a set of EU regulations that apply to alternative investment fund managers (AIFMs), including managers of hedge funds, private equity firms and real estate funds.
- U.S. financial laws and regulations, including the Investment Advisers Act of 1940 and Investment Company Act of 1940, Securities Act of 1933, Securities Exchange Act of 1934, Commodity Exchange Act, Commodity Futures Modernization Act of 2000, U.S. Bank Secrecy Act (BSA), Sarbanes-Oxley Act of 2002, Gramm-Leach-Bliley Act, USA PATRIOT Act, and Employee Retirement Income Security Act (ERISA).
- Compliance with anti-money laundering regulations promulgated by the Financial Crimes Enforcement Network (FinCEN) and with economic and trade sanctions administered by the Office of Foreign Assets Control (OFAC).
- UK and other international financial laws and regulations, including Brexit, EMIR, UCITS Directive, PRIIPS and Solvency II.
- Regulatory issues in mergers and acquisitions of financial services companies and funds.
- The operational integration of diversified financial institutions, cross-border compliance procedures, tax and executive and trustee compensation.
- Compliance issues, examinations and inspections in the course of day-to-day representation and as special counsel to asset managers, investment funds and their boards or fund services providers on significant compliance matters.
- Compliance manuals, policies and procedures as well as compliance reviews and audits.
- Derivatives and commodities.
Front-line resources for clients operating in today’s funds space
This is a time of intense regulatory change. Dechert’s financial services group is at the forefront of probing, monitoring and reporting on developments. Our lawyers provide:
-
Many of Dechert’s financial services group lawyers have years of experience as regulators, having held key posts at the U.S. Securities and Exchange Commission (SEC), UK Financial Services Authority (now Financial Conduct Authority), UK Personal Investment Authority and the U.S. Office of the Comptroller of the Currency (OCC). Several Dechert alumni are now with key regulators, including the SEC. For specialist expertise and insights, we access our own Dechert network.
The team also has close relationships with important trade associations and other groups that represent funds, fund managers and fund directors. These groups include the Alternative Investment Management Association (AIMA), where we have representatives on at least 30 of its expert working groups), the Investment Association (IA), Investment Company Institute (ICI), Independent Directors Council (IDC), Mutual Funds Directors Forum (MFDF), British Private Equity & Venture Capital Association (BVCA), Bank Administration Institute (BAI), Association of the Luxembourg Fund Industry (ALFI), Luxembourg Private Equity and Venture Capital Association (LPEA), European Fund and Asset Management Association (EFAMA) and Managed Funds Association (MFA).
-
SEC enforcement investigations and actions often grow out of examinations conducted by the SEC’s Division of Examinations (EXAMS). There is close collaboration and coordination between the SEC’s Enforcement Division and EXAMS, particularly among the Enforcement Division’s Asset Management Unit, EXAMS’s Investment Adviser/Investment Company Group, and the SEC’s Division of Investment Management.
SEC-regulated entities consistently turn to Dechert to help navigate the examination process and to provide strategic guidance from beginning to end. Just as SEC examiners will draw on the expertise of other SEC Divisions across the Commission, Dechert draws on the legal, regulatory, and enforcement expertise that exists across its industry-leading practice groups to advise clients during the exam process. Dechert has a proven track record of heading off enforcement referrals and investigations arising from examinations by adeptly addressing and responding to exam findings and deficiencies.
Our team tracks and responds to the latest developments and EXAMS priorities, which often parallel the SEC’s other regulatory initiatives. Recent examinations have focused on a variety of issues, including fiduciary obligations, compliance programs, marketing practices, custody, compensation arrangements, asset valuation, protection of client information, due diligence practices, management of conflicts of interest, and reporting obligations. We have a long history of success in guiding investment advisers, registered investment companies, and broker-dealers throughout the process.
