2 Marketing Private Investment Funds

2018 ◽  
Author(s):  
Spangler Timothy
Keyword(s):  
Financial Services ◽  
Private Investment ◽  
The United States ◽  
Investment Funds ◽  
Public Marketing ◽  
Net Worth ◽  
Financial Regulations ◽  
Private Placements ◽  
Investment Advisers ◽  
The Uk

This chapter examines how private investment funds are marketed, first by considering the different distribution approaches for such funds. Private investment funds are distributed mainly through private placements rather than public offers. With limited exceptions, this is generally driven by restrictions on public marketing efforts imposed by financial regulations such as the Financial Services and Markets Act 2000 (FSMA) in the UK. The chapter proceeds by discussing financial promotion restrictions in the UK as well as exemptions to these restrictions, including one-off communications, high net worth individuals, and sophisticated investors. It also explains the promotion of collective investment schemes (CIS) and the consequences of CIS categorisation before concluding with an analysis of laws that govern the marketing of private investment funds in the United States, namely: the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Securities Act of 1933, and the Securities Exchange Act of 1934.

5 The Regulatory Duties Arising from the Provision of Investment Advisory and Management Services

2018 ◽  
Author(s):  
Spangler Timothy
Keyword(s):  
Financial Services ◽  
Public Investment ◽  
Private Investment ◽  
The United States ◽  
Fiduciary Duty ◽  
Regulatory Regime ◽  
Investment Funds ◽  
Investment Advisers ◽  
The Uk ◽  
Management Services

This chapter examines the regulatory duties of investment managers arising from the provision of investment advisory and management services. Managers of private investment funds that are authorised or regulated as investment advisers or managers can owe regulatory duties arising under the Financial Services and Markets Act 2000 (FSMA) in the UK and the Investment Advisers Act of 1940 in the United States. The chapter begins with a discussion of the UK Financial Conduct Authority’s (FCA) regulation of the conduct of firms authorised under the FSMA, including collective investment schemes, public investment funds, and fiduciary duty in the financial services regulatory regime. It then considers the FCA’s regulatory response to private investment funds as well as the U.S. Securities and Exchange Commission’s compliance programme for investment advisers and managers primarily under the Advisers Act. It concludes with an analysis of financial services regulation of fiduciary duties.

15 Litigation and Enforcement involving Private Funds after the Global Financial Crisis

2018 ◽  
Author(s):  
Spangler Timothy
Keyword(s):  
Financial Crisis ◽  
Hedge Funds ◽  
Global Financial Crisis ◽  
Private Investment ◽  
The United States ◽  
Regulatory Regime ◽  
Investment Funds ◽  
The Subject ◽  
The Global Financial Crisis ◽  
The Uk

This chapter focuses on the increase in the amount of litigation and enforcement actions against private investment funds in the United States, the UK, and across the globe as a result of the global financial crisis. As more disputes arose during the course of the global financial crisis, the legal and regulatory regime impacting private investment funds has been the subject of closer scrutiny than has been seen in previous decades. The chapter first considers the Securities and Exchange Commission’s (SEC) enforcement actions against hedge funds as well as U.S. civil litigation prior to the financial crisis before discussing Dodd-Frank and its effect on enforcement. It then examines the SEC’s enforcement actions regarding broker-dealer registration, along with some of its key enforcement actions after Dodd-Frank. It also analyses the Financial Conduct Authority’s enforcement priorities after the global financial crisis and key litigation in the UK involving private investment funds.

7 Governance Issues in Offshore Companies Used as Private Investment Funds

2018 ◽  
Author(s):  
Spangler Timothy
Keyword(s):  
Board Of Directors ◽  
Private Investment ◽  
The United States ◽  
Fiduciary Duty ◽  
Duty Of Care ◽  
Cayman Islands ◽  
Investment Funds ◽  
The Board Of Directors ◽  
The Uk

This chapter examines issues of governance arising from the use of offshore companies as private investment funds. Funds established in offshore jurisdictions are often structured as limited companies that issue shares to investors. Governance issues can arise in offshore companies when voting rights are separated from economic participation. The chapter first considers the role of the board of directors in private investment funds before discussing taxation issues affecting offshore companies used as private investment funds in the UK and in the United States. It then explains the duties of directors under Cayman Islands law, including fiduciary duty, duty of care, diligence, and skill, and duty of confidentiality. It also describes the composition of the board of directors, its meetings, relationship with the fund manager, and responsibility for approval of fund documentation.

3 Taxation of Private Investment Funds

2018 ◽  
Author(s):  
Spangler Timothy
Keyword(s):  
United States ◽  
Joint Venture ◽  
Private Investment ◽  
The United States ◽  
Investment Funds ◽  
Conflicting Interests ◽  
Tax Status ◽  
The Uk ◽  
Limited Partnerships

This chapter discusses the taxation of private investment funds, addressing questions such as whether there are any conflicting interests between investors and/or managers and/or others involved in the fund (including joint venture parties) in relation to any aspect of the tax affairs of the fund; whether any investor could be liable (whether on its own, jointly, or jointly and severally) for any taxation liability of the fund or any of its subsidiary vehicles; or the extent to which the tax treatment of the fund or any of its subsidiary vehicles is dependent on the tax status of investors. The chapter compares the taxation of limited partnerships and offshore companies in the UK and in the United States.

scholarly journals Moving Away from Category Exclusivity Deals to Sponsorship Activation Platforms: The Case of the Ryder Cup

2021 ◽  
Vol 13 (3) ◽  
pp. 1151
Author(s):  
Yunchao Bai ◽  
Brian H. Yim ◽  
John Breedlove ◽  
James J. Zhang
Keyword(s):  
United States ◽  
Social Media ◽  
Financial Services ◽  
Case Analysis ◽  
The United States ◽  
Brand Awareness ◽  
Inquiry Process ◽  
Standard Life ◽  
The Uk ◽  
Collaborative Efforts

As a biennial event, the Ryder Cup is a men’s golf competition between teams from Europe and the United States. Ernst & Young (EY) and Standard Life Investments (SLI), who are in same business category (i.e., financial services), have served as official partners of the event in recent years. While the two firms are willing to move away from the traditional sponsorship practices of category exclusivity deals, both have been able to achieve significant success through their collaborative efforts in activating their sponsorships. This is a new, fascinating phenomenon in both sponsorship concept and practice. Through an exploratory inductive inquiry process, in this study we conduct a case analysis by examining the sponsorship activations of EY and SLI at the 2014 Ryder Cup event held in the UK. The findings demonstrate that social media plays an impactful role in the companies’ ability to engage target audiences. EY used the Ryder Cup captain as a brand ambassador, who embodied its sponsorship theme of leadership and teamwork. SLI focused on running advertising campaigns to build company image and increase brand awareness.

scholarly journals Problems of Private Equity Placements in South Korea and Suggestions for Amendable Measures

2021 ◽  
Vol 50 (2) ◽  
pp. 171-200
Author(s):  
Jae Hyun Gwon
Keyword(s):  
South Korea ◽  
Financial Stability ◽  
Private Equity ◽  
Private Investment ◽  
The United States ◽  
Individual Investors ◽  
Investment Funds ◽  
Private Placement ◽  
Equity Funds ◽  
Private Equity Funds

In the context of the protection of individual investors of private investment funds in South Korea, this study examines the current regulation of private placements from legal and economic perspectives. It compares Rule 506 of Regulation D in the United States with the similar regulation of South Korea. The most distinguishing feature of South Korea’s regulation is that any individual who can evidence a certain investment amount, regardless of accreditation or sophistication, is eligible to participate in private equity funds, which has recently resulted in “incomplete sales” problems in Korea. To conform to the definition of private equity, it is best to abolish the threshold criteria of minimum investment amount. Otherwise, the “sales” of private equity via commercial banks and central institutions for financial stability must at least be banned so that individual investors do not confuse private placement with public offering. In return, public advertisement can be permitted for private equity funds with only accredited investors and sophisticated investors. Public fund investment in private equities are de facto private equities; they are inappropriate for individuals, who may be confused with private funds and public funds. As such, they need to be limited.

16 The Global Frontiers of Private Investment Funds

2018 ◽  
Author(s):  
Spangler Timothy
Keyword(s):  
United Arab Emirates ◽  
Asset Management ◽  
Financial Services ◽  
Private Investment ◽  
First Century ◽  
Investment Funds ◽  
Private Monitoring ◽  
Fund Managers ◽  
Financial Centre ◽  
Financial Transactions

This chapter discusses the global expansion of private investment funds in the twenty-first century, focusing on two regions: Asia and the Middle East. In particular, it examines questions about the balance of power between fund managers and investors, the role of top-down regulation in non-public financial transactions, and the ability of private monitoring solutions to provide a meaningful alternative to such approaches. The chapter first describes the asset management industry in the United Arab Emirates, with emphasis on the roles of the Dubai International Financial Centre and the Dubai Financial Services Authority, before turning to Saudi Arabia and Islamic investment funds. It also considers Hong Kong and Singapore as centres of private investment funds in Asia, along with passporting and recognition that facilitate the cross-border offering of funds in other participating jurisdictions throughout the continent.

9 US and EU Regulatory Responses to The Global Financial Crisis

2018 ◽  
Author(s):  
Spangler Timothy
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Private Investment ◽  
The United States ◽  
Investment Fund ◽  
The European Union ◽  
International Consensus ◽  
Fund Managers ◽  
Investment Advisers ◽  
The Impact

This chapter examines the impact of the 2007–08 global financial crisis on the regulation of private investment funds in the United States and in the European Union. It begins with a review of Dodd-Frank, which can be seen as the U.S. movement towards the international consensus that private fund managers should be directly regulated by the national financial regulator. It then considers Dodd-Frank’s repeal of the so-called ‘private adviser exemption’ previously found in the Investment Advisers Act of 1940, along with its exemption of ‘foreign private advisers’ from registration. It also explains the distinction between ‘US advisers’ and ‘non-US advisers’, Dodd-Frank’s compliance requirements for various types of investment advisers, and Rule 204(b)-1, jointly approved by the Securities and Exchange Commission and the Commodity Futures Trading Commission under the Investment Advisers Act. The chapter concludes with an analysis of the Alternative Investment Fund Managers Directive (AIFMD) and future outlook for Dodd-Frank.

1 Introduction to Private Investment Funds

2018 ◽  
Author(s):  
Spangler Timothy
Keyword(s):  
Corporate Governance ◽  
Hedge Funds ◽  
Financial Services ◽  
Private Equity ◽  
Private Investment ◽  
Fiduciary Duty ◽  
Regulatory Regime ◽  
Investment Funds ◽  
Equity Funds ◽  
Investment Manager

This chapter provides an introduction to private investment funds. It first considers the governance challenge in private investment funds that can be regarded as a need to improve the standard of corporate governance in the legal vehicles that comprise such funds. In particular, it examines the manner in which hedge funds and private equity funds affect the corporate governance of the portfolio companies in which they invest. The chapter proceeds by discussing governance issues arising from the use of partnerships vs. corporations as private fund vehicles, along with the consequences of governance failures and the function of private investment funds. It also analyses legal and regulatory issues surrounding the structuring and operations of private investment funds, the legal and fiduciary duties of the investment manager, and fiduciary duty in the financial services regulatory regime. Finally, it describes alternatives to centralised, top-down regulation of private investment funds.

The Law of Private Investment Funds

2018 ◽  
Author(s):  
Spangler Timothy
Keyword(s):  
Hedge Funds ◽  
Financial Services ◽  
Private Equity ◽  
Global Financial Crisis ◽  
Private Investment ◽  
Investment Fund ◽  
Investment Funds ◽  
Fund Managers ◽  
The Global Financial Crisis ◽  
The Impact

This book provides a clear and concise dual US/UK and pan-asset analysis on the legal and regulatory issues that arise in connection with private investment funds. The book advises on the structuring, formation, and operation of a range of asset classes, including hedge funds, private equity funds, real estate funds, and other non-retail collective investment vehicles. This edition has been revised to reflect the numerous and significant developments in financial services regulation on both sides of the Atlantic since the publication of the second edition. More elements of the Dodd Frank financial regulatory reforms, which increased the scope and reach of regulation applicable to private funds, have been implemented and commented on in this edition. In relation to European regulation, the impact of the commencement of the Alternative Investment Fund Managers Directive (AIFMD) has also now been analysed. The US/UK approach is maintained, but this edition now also includes consideration of third countries, particularly the Middle East and Asia. An entirely new chapter is dedicated to litigation and regulatory enforcement, and some treatment is given to the effects of the global financial crisis, in particular the regulatory response and the changes to negotiating leverage of fund managers and fund investors. The potential impact of ‘Brexit’ on the United Kingdom private funds industry and the future of the AIMFD and European private funds is also examined.

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