MAGAZINE
December 2016 Issue
Financier Worldwide Magazine
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COVER STORY
ORM within financial services – the state of play
The importance of an organisation’s operational risk management (ORM) function – particularly for financial institutions (FIs) – should not be misunderstood nor undervalued. Since the financial collapse of 2007-2008...
FEATURES
For companies embarking upon an M&A deal, there are countless obstacles and issues to meticulously plan for and overcome if the transaction is to be a success and if the newly merged company is to be prosperous...
Pharma industry M&A comes to the boil
The pursuit of mergers & acquisitions (M&A) within the pharmaceutical and biotechnology industry in 2016 has been a fruitful endeavour for corporate entities prepared to take the plunge. Even a cursory examination...
Re-evaluating London’s place in global investment
London’s place in the hierarchy of great global cities has been guaranteed for decades, if not centuries. It has long been viewed as a cultural, legal and political powerhouse. London has also been a global financial hub, the epicentre...
Chinese real estate investment in the US
The US real estate market has long been an attractive destination for both domestic and overseas investors, the perception being that the industry helps facilitate financial success. In a recent survey by Better Homes and Gardens Real Estate...
Will the EU tax bite from Apple trigger crackdown or reform?
Although hardly a face-off of David and Goliath proportions, the European Commission (EC) order requesting Apple pay $14.5bn in unpaid taxes to the Irish government does represent a major taking to task of a corporate behemoth...
ROUNDTABLE
MODERATOR: Mark Robinson, INSOL International. THE PANELLISTS: Barry A. Chatz, Arnstein & Lehr LLP; James Feltman, Duff and Phelps; Mark F. Liscio, Kaye Scholer LLP; Elaine Nolan, Kirkland & Ellis International LLP; Daniel Hayek, Prager Dreifuss AG; Van C. Durrer II, Skadden, Arps, Slate, Meagher & Flom LLP; and Richard H. Golubow, Winthrop Couchot Professional Corporation.
Bankruptcy and restructuring is complex, full of twists and turns. Yet for all the expense, blame, negotiation, compromise and introspection involved, the process does provide an opportunity for distressed companies to get their businesses...
SPECIAL REPORT
When it comes to making an investment, one can be forgiven for finding the choice of investment vehicles somewhat overwhelming. This tricky environment can seem awash with impenetrable jargon and intimidating costs, making any bid to grow...
FORUM: MiFID II – the impact on investment managers
FW moderates a discussion on the impact of MiFID II on investment managers between Matthew Baker at Berwin Leighton Paisner LLP, John Adams at Shearman & Sterling LLP and Etienne Deniau at Societe Generale Securities Services.
Drivers of change in the hedge fund industry: fees
Preqin Hedge fund fees have come under increased scrutiny lately as some investors, disappointed with the recent performance of their portfolios, have begun to pay closer attention to the costs of their investments. A number of...
A view on Brexit for asset managers
Ropes & Gray A great deal has happened – and has been written about – since the United Kingdom chose to leave the European Union on the 23 June 2016. Not only does the country have a new prime minister (and we now know that she believes that “Brexit...
Issues affecting investment funds
Ashton Barnes Tee The majority of investment funds operate without problem and allow investors a convenient approach to invest monies in a chosen manner, taking advantage of all of the beneficial attributes of the investment fund structure. However...
Singapore funds and fund management – recent developments
Drew and Napier LLC The Monetary Authority of Singapore (MAS) Asset Management Annual Survey reported in October 2016 that globally, assets under management (AUM) grew just 1 percent to US$71.4 trillion, weighed down by slower growth in emerging...
New investments funds and REIT regimes in Saudi Arabia
King & Spalding The Saudi Arabian economy, while strong and stable relative to other countries in the region, has entered a period of transition. In early 2016, the country’s leadership adopted a national transformation plan – ‘Vision 2030’ the aim...
New Hungarian law makes easier to establish a private equity fund manager and private equity fund
CMS Budapest Simultaneously with the implementation of the EU Alternative Investment Funds Directive into Hungarian law, the Hungarian parliament also made various changes to national rules regulating the establishment and operations of private equity funds...
The outlook for investment companies
Carey Group It has been an interesting year inside the boardroom of investment companies, with a shift in focus from IPO deals and capital raising to managing the status quo. Unexpected and under-discussed implications of the Brexit vote...
DEALfront
mergers & acquisitions
AT&T to acquire Time Warner in $85bn deal
American communications giant AT&T Inc. announced that it is to acquire multimedia firm Time Warner Inc. in a deal worth $85bn – the largest deal announced in 2016 to date. The combination of the two companies is another step in the...
CIT Group to sell aircraft leasing unit for $10bn
CIT Group Inc, a leading provider of commercial lending and leasing services, entered into a definitive agreement to sell its commercial aircraft leasing business, CIT Commercial Air, to Avolon Holdings Limited in a transaction valued at $10bn...
private equity & venture capital
Naspers sells Polish Allegro unit to PE firms for $3.25bn
Global internet and entertainment group Naspers Limited announced its intention to sell its 100 percent stake in Allegro Group, one of the world’s largest online marketplaces, for $3.253bn. The sale – which includes both Allegro.pl...
RBS sells $2.5bn worth of loans to Cerberus
Ulster Bank, the Irish division of the Royal Bank of Scotland, confirmed that it is to sell a number of non-performing loans (NPLs) to private equity firm Cerberus. The loans, part of the Project Oyster loan portfolio, are related to properties in...
bankruptcy & corporate restructuring
Nortel stakeholders reach $7.3bn settlement agreement
Almost eight years after multinational telecommunications and data networking equipment manufacturer Nortel Networks Corporation originally filed for Chapter 11 bankruptcy protection, on 14 January 2009, a settlement has now been...
Caesars creditor deal under scrutiny
The last few years has not been a particularly happy period in the history of gambling giant Caesars. In January 2015, the main unit of Caesars Entertainment Corp found itself filing for Chapter 11 bankruptcy protection. As the gambling...
PROFESSIONALinsight
Banking & Finance
Relocation – what are the risks?
Brickendon Consulting The vote to leave the European Union (EU) and the potential risk of losing the financial passport has ignited intense discussions about whether financial services should relocate to countries that are still part of the bloc...
FinTech developments and the ‘Uber’ moment
Reed Smith There have been a number of exciting FinTech developments this year, including TD Bank’s app which incorporates chat into banking services, the use of biometric authentication, including retinal and fingerprint scans to assist with data security...
Payment Services Directive 2 (PSD 2) in short
McKeever Solicitors PSD 2 came into force on 12 January 2016 and European Union (EU) member states must transpose PSD 2 into their national laws and regulations by 13 January 2018. Most importantly, the European Commission (EC) has stated that member states should interpret the existing rules on payment services in line with PSD 2 and must not adopt new measures contradicting PSD 2.
Risk Management
Miller & Chevalier Chartered On 2 October, the US Department of Justice (DOJ) raised the stakes for companies contemplating voluntary disclosure of possible violations of export control and sanctions laws and regulations by issuing new guidance encouraging companies to submit disclosures of such violations to DOJ, as well as the agency responsible for civil...
Mills & Reeve LLP Sixty years ago, whirring away in a facility in Santa Monica, a program known as ‘The Logic Theorist’ quietly and elegantly developed an undiscovered proof to a known mathematical theorem. This first ‘thinking machine’ was the...
What the CEO needs to know about data
It is time to put data in a less technical and more current and urgent context. The threats to an organisation’s reputation and sustainability posed by cyber threats (e.g., exposing sensitive customer information, disrupting...
Focusing on technology implementations and dispute risks
IT Group Technology is everywhere, so how are technology implementations dealt with across different industries? In the construction or transport sectors, for example, technology is not at the forefront; it is a necessity which...
SPOTlight
Shoosmiths Headline grabbing fines for corporate offences have historically been the preserve of major financial, anticorruption or antitrust investigations. While companies are yet to be fined hundreds of millions of pounds for environmental...
Edelman Corporate culture should be a set of authentic behaviours, set forth by a founder or management team of a company, which is embraced by the entire organisation. Certainly, each culture is distinctive and many diverse elements...
Organising for creativity and innovation – lessons from the biopharmaceutical industry
Catenion The biopharma industry is arguably the most knowledge intense industry of all. Human creativity and ingenuity within R&D and beyond play key roles in turning that knowledge into IP and value for patients and corporate stakeholders...
CONTRIBUTORS
Arnstein & Lehr LLP
Ashton Barnes Tee
Berwin Leighton Paisner LLP
Brickendon Consulting
Carey Group
Catenion
CMS Budapest
Drew and Napier LLC
Duff and Phelps
Edelman
INSOL International
IT Group
Kaye Scholer LLP
King & Spalding
Kirkland & Ellis International LLP
McKeever Solicitors
Miller & Chevalier Chartered
Mills & Reeve LLP
Prager Dreifuss AG
Preqin
Reed Smith
Ropes & Gray
Shearman & Sterling LLP
Shoosmiths
Skadden, Arps, Slate, Meagher & Flom LLP
Societe Generale Securities Services
Winthrop Couchot Professional Corporation