Clifford Chance

Q&A on the Foreign Corrupt Practices Act for private equity firms

14 April 2011

Agencies charged with enforcement of the US Foreign Corrupt Practices Act (FCPA) have broadened their traditional focus, recently bringing the investment management industry within the scope of their scrutiny. In particular, the US Securities and Exchange Commission's (SEC) current investigation of private equity firms' and banks' dealings with sovereign wealth funds, combined with the ongoing investigation involving the private equity arm of Allianz SE, have spurred private equity firms to introduce or enhance anti-bribery controls. But what risks do they need to address, and what are the particular implications of the FCPA for private equity firms?

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