The main advantage gained by investing in funds is to gain access to professional investment management. By pooling investment with others, investors are able to benefit from diversification and economies of scale and also benefit from the manager’s experience, expertise and knowledge. Something they are not normally able to do without pooling.
Bovill has been supporting investment funds of all shapes and sizes since our very early days. Our experience spans all types of alternative asset managers, along with depositories, administrators and other service providers.
We know that each firm is different and has different needs. For some clients we fulfil almost all their compliance needs. For others we give support in specific areas, for example completing AIFMD Annex IV returns, reviewing financial promotions, or training boards on their regulatory responsibilities. For some clients we provide one of our team members, for example one day per week, to manage all the compliance tasks. For others we agree a full programme of activities throughout the year. And for others we are simply here at the end of the phone to answer questions and fix problems.
We have a team dedicated to advising hedge funds and other alternative investment firms. We help with authorisations, responding to regulatory requirements such as AIFMD reporting, and ongoing compliance advice and monitoring. We often start our relationships with hedge funds by helping with FCA authorisation – we can help with determining the required permission, approved person issues, systems and controls, financial projections and training. From there, we will be on hand to support your day-to-day operations and make sure you do the right thing.
We have close relationships with administrators, lawyers and other service providers and can make any introductions you need. We help you respond to changing regulatory requirements such as MiFID II. We can also take on the burden of more routine tasks such as checking compliance manuals are up to date, drafting new procedures and running monitoring programmes. We do this to allow you to focus on your core business. We know there is no one-size-fits-all approach. We make sure that what you get from us works specifically for you – taking your commercial challenges and the particular risks you face into account.
Private equity funds
We help lots of private equity firms, including those who operate in primary and secondary markets, and those authorised to advise and arrange transactions and manage and operate private equity funds. We have extensive experience in determining whether activities are subject to FCA regulation, assisting firms in obtaining authorisation from the FCA, providing ongoing support, preparing financial and non-financial regulatory returns, and undertaking risk-based compliance monitoring. The investment vehicles involved in this sector are often unregulated collective investment schemes. We can provide specialist advice on the complexities of promoting and marketing such schemes. The regulatory issues we have helped firms to resolve include:
- the application of AIFMD
- meeting the FCA’s expectations in identifying, managing and monitoring potential conflicts of interest
- marketing and promoting funds to different types of investors
- acting as a depositary for private equity funds under AIFMD.
Real estate funds
Real estate investment management has always been a focus for us. Many of the best known firms in the property sector, nationally and globally, are our clients. But we don’t just support real estate managers and advisers, we also provide guidance to the RICS, advise trade bodies and work closely with other service providers like commercial lenders, mortgage providers, insurers, depositaries and administrators. As a result, we have a deep and broad understanding of the property industry. So we are perfectly placed to respond quickly and helpfully to changes in the regulatory landscape. For example, we helped one of the first PAIFs to become authorised in the UK. We also love giving practical advice on the grey areas at the edge of the regulatory landscape. What is a joint venture? When am I marketing under AIFMD? And – most importantly – is this a regulated activity? These sorts of questions are right up our street.
OEICs, UCITS, NURS, PAIFs, FAIFs… this growing sector is becoming rapidly more sophisticated. As a result, regulated funds have seen increased regulatory focus. We understand the challenges faced by fund management firms and their retail funds businesses through working closely with them. Our clients include fund managers, advisers and administrators across a range of regulated funds. Increasingly, we assist clients in having their overseas domiciled schemes recognised within the UK under section 264 of FSMA. We have extensive hands-on experience in preparing fund managers for FCA authorisation and project managing this process, as well as providing ongoing compliance support, advice and assistance post authorisation. We can also undertake independent compliance monitoring against relevant FCA requirements, such as the Collective Investment Schemes and Funds Sourcebooks. We work in partnership with our clients to provide as much or as little support as you need. We have our finger on the pulse of regulatory change and our technical experts can advise on both emerging UK and European legislation.