Clifford Chance's global investment management expertise allows us to advise on the complexities of a number of authorised and registered funds and fund formats from designated jurisdictions, including UCITS, Exchange Traded funds and 40 Act funds.
The popularity of UCITS and other authorised funds is likely to continue in light of the global proliferation of the marketing and sales of these funds beyond their home borders. Indeed, in the wave of regulatory change post-financial crisis, many of these fund formats are finding favour as an alternative fund structure that can be adopted in one country and marketed in another.
In addition to our understanding of these funds in their home jurisdictions, we are able to advise on their acceptability and use within other jurisdictions. We can advise on all aspects of these fund formats, including the structuring and launching of funds, listing, custody, outsourcing, prospectus requirements, and prospectus liability issues as well as distribution issues.
Especially in relation to the EU's UCITS IV directive, clients now face new legal/organisational requirements which require legal advice in additional areas, such as regulatory and tax advice.
Exchange traded funds
The exchange traded funds (ETF) sector is one of the fastest growing segments of the investment management industry today. ETFs are passively traded index-tracking funds that trade in real-time on exchanges with constantly changing prices, unlike traditional mutual funds which are priced once a day.
In just ten years, the number of listings of ETFs in the US alone has grown from virtually zero to over 1,000, with several major financial institutions each managing ETFs worth several billion dollars. Investors added US$56 billion more than they withdrew from ETFs in 2009, pushing the segment's total assets to more than US$700 billion in September 2009.
Clifford Chance has advised clients since the introduction of ETFs and has advised on the introduction of such funds to exchanges around the world.
In the current climate of regulatory change, ETF manufacturers and distributors face unique challenges in a number of markets. Our detailed knowledge of ETF products, combined with our understanding of the current regulatory environment, makes us the adviser of choice for the ETF industry.