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Legal solutions for your asset management outsourcing projects

When asked for their key commercial drivers for outsourcing, most businesses will cite benefits such as cost savings, driving service improvements and business change, harmonising services across its organisation and taking advantage of economies of scale. These potential benefits and the risks from not giving such a project full attention, makes any decision to outsource a key one for your business.

Our international asset management outsourcing team has cutting-edge experience of acting for both customers and suppliers in the asset management industry – we know both sides of the fence and can advise you how to cut down the likelihood of future disputes, manage risk and understand your key concerns.

Our team have completed secondments to some of the world’s largest financial institutions and through those experiences they have gained an understanding of the key commercial drivers behind any outsourcing transaction.

Regulatory experience

We know our way around the changing global regulatory landscape, with our extensive experience in, and knowledge of, the asset management industry. For example, we have a deep understanding of the UK’s Financial Conduct Authority’s (FCA) and Prudential Regulation Authority’s (PRA) rules and guidance on outsourcing (including the rules contained in the Senior Management Arrangements, Systems and Controls (SYSC) Handbook).

We also recognise the importance of contributing to the outsourcing industry. In response to the FSA’s (now FCA) letter to “CEOs of Asset Managers”, we worked closely with the Investment Management Association (IMA) to produce a White Paper considering the risks resulting from the increased volume of outsourcing in the asset management industry and how best to increase resiliency in an outsourced model. This paper was the subject of a debate at an IMA-arranged round table with the FCA.

We are very well placed to advise organisations on what the key findings in the FCA’s Thematic Project Findings Report on Outsourcing in the Asset Management industry mean for them in practice.

Full service

Our international team also advise on non-sector specific legislation such as treating customers fairly, money laundering, anti-bribery and data protection, and our team of employment lawyers can advise on the vital legal but also employment-relations aspects of your strategies.

We have designed interactive training courses that equip clients with the practical knowledge and understanding they need to lead their team and organisation through the complex area of an outsourcing transaction.

Our experience

Our international experience demonstrates our ability in acting for authorised firms, banks and investment firms in some of the largest, most demanding and complex outsourcing transactions in the asset management industry

  • Advising a major fund manager on the second generation outsourcing of the fund accounting and administration, investment operations, share class hedging, stock lending, custody and depository functions in respect of their UK and Luxembourg domiciled funds to a major US bank. The assets under management for the transaction were circa £70bn, with the funds distributed globally.
  • Advising a world leading fund manager on the second generation outsourcing of its transfer agency function. The transaction was successfully completed in an intensive 3.5 week negotiation period (to meet the needs of the client and the project). The transaction was complicated by ensuring that consent and sign-off from the Luxembourg regulator was obtained, without impacting on the timetable or our client’s negotiation position. Funds under management for this transaction are in excess of €55 billion.
  • Advising financial institutions on the circular on ‘Outsourcing Banks’ from the Swiss Financial Market Supervisory Authority FINMA.