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Recent SEC sweep highlights the need for US investment advisers seeking business from sovereign wealth funds to develop policies for FCPA compliance

Edward L. Pittman (Counsel, at Dechert LLP, Washington, DC, USA)
Cheryl A. Krause (Partner, at Dechert LLP, Philadelphia, Pennsylvania, USA)
Thomas C. Bogle (Partner, at Dechert LLP, Washington, DC, USA)
Justin C. Danilewitz (Associate, at Dechert LLP, Philadelphia, Pennsylvania, USA)

Journal of Investment Compliance

ISSN: 1528-5812

Article publication date: 14 June 2011

149

Abstract

Purpose

The aim of this paper is to explain the provisions of the US Foreign Corrupt Practices Act that may be applicable to investment advisers seeking investments from foreign governments.

Design/methodology/approach

The paper explains the background of the FCPA and its applicability to investment advisers, recommends policies and procedures for advisers to employ to reduce the risk of FCPA actions, recommends due diligence practices for third‐party relationships, and reminds advisers seeking business opportunities outside the USA of the importance of compliance with foreign anti‐bribery laws.

Findings

The FCPA applies to investment advisers whenever they seek a benefit, directly or indirectly, from a foreign official, as in the course of seeking investments in a sovereign wealth fund.

Practical implications

Given the SEC's increased interest in pay‐to‐play activities, investment advisers who are seeking investments outside the USA should carefully review their existing FCPA policies, or develop new policies if they have not done so already.

Originality/value

The paper provides practical guidance from experienced financial services lawyers.

Keywords

Citation

Pittman, E.L., Krause, C.A., Bogle, T.C. and Danilewitz, J.C. (2011), "Recent SEC sweep highlights the need for US investment advisers seeking business from sovereign wealth funds to develop policies for FCPA compliance", Journal of Investment Compliance, Vol. 12 No. 2, pp. 11-15. https://doi.org/10.1108/15285811111142865

Publisher

:

Emerald Group Publishing Limited

Copyright © 2011, Company

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