In February 2011, The Wall Street Journal reported that the SEC had launched a wide-ranging inquiry into the private equity industry, including looking into "higher-risk" activities. The news follows press reports in December 2010 that indicated the SEC was investigating Munich-based Allianz SE in relation to potential Foreign Corrupt Practices Act (FCPA) violations by manroland AG, a German printing manufacturer that is majority-owned by Allianz’s private equity arm. Similar accounts of FCPA-related investigations into private equity firms are likely to surface as U.S. enforcement authorities have made FCPA enforcement a top priority. With the SEC’s expanding jurisdiction over hedge funds and private equity firms, private equity investors must understand the risks posed by their underlying investments’ non-compliance with the FCPA, as well as the appropriate measures they can take to minimize these risks.
Please join us for a Foley Executive Briefing Series program, which will provide an overview of the FCPA, the U.K. Bribery Act, and the laws’ many complexities. The program also will include discussion of the following:
- The current state of FCPA enforcement, including a discussion of recent reports that enforcement authorities are targeting major banks, such as Goldman Sachs, in connection with investments into sovereign wealth funds.
- The expanding jurisdiction of the SEC over hedge funds and private equity firms. These changes will have broad compliance implications, including bringing many of these firms under the scope of the SEC’s FCPA enforcement efforts.
- The reasons a strong a FCPA compliance program makes sense for private equity firms from a business perspective. FCPA compliance problems not only can decrease the value of a target company as the result the extraordinary fines and penalties, but also may significantly impact a target company’s bottom line by drastically disrupting operations.
- The steps private equity firms and hedge funds should take to bolster their FCPA compliance internally, as well as when conducting due diligence of investment targets with international operations.
These topics will be addressed in an interactive panel session led by Foley Partner David W. Simon, Senior Counsel A. Michael Primo, and Associate John B. Wynn.
For questions about registering, please contact Diana Mathis at dmathis foley.com.
The Rising Storm: Private Equity and the Foreign Corrupt Practices Act is part of the Foley Executive Briefing Series. Learn more about programs in the series at Foley.com/FEBS.