Recent SEC Sweep Highlights the Need for U.S. Investment Advisers Seeking Business from Sovereign Wealth Funds to Develop Policies for FCPA Compliance
February 17, 2011
Recent news articles indicate the SEC is conducting a sweep exam of U.S. advisers that may have investments from Sovereign Wealth Funds. Among other things, the SEC is seeking information about the marketing practices of the advisers and their use of third-party placement agents, consultants or finders. In addition, the SEC has inquired about the policies and procedures of the advisers designed to assure compliance with the Foreign Corrupt Practices Act (“FCPA”) by preventing payments intended to improperly influence foreign officials. This update examines how the FCPA may apply to advisers seeking investments outside the United States, and what steps they might take to prevent violations.