World Compass

World Compass provides marketing and distribution guidance in more than 100 countries for UCITS funds, open-end funds (including hedge funds, U.S. mutual funds and exchange traded funds) and private closed-end funds (including private equity, debt, real estate and infrastructure funds).

The fund marketing module provides succinct information relating to marketing open-end and closed-ended funds to investors in each jurisdiction covering private placement rules, licensing and intermediary requirements, the permissibility of various marketing scenarios and other relevant requirements. The module also includes sample disclaimers and selling restrictions, Q&A on specific marketing scenarios and in-depth coverage of Europe’s Alternative Investment Fund Managers Directive (AIFMD).

This module will guide subscribers through the relevant issues and will answer real questions, such as:

• Sales are planning an Asia roadshow. Where can we privately place our funds?
• Do I need to use a locally licensed intermediary to privately place in Mexico?
• Is there any difference between marketing LLPs and corporate trusts in Japan?
• How will the recently announced regulatory changes in Switzerland impact Swiss placement?
• Can you tell me about Art 42 AIF notifications?
  

• I have been approached by a Taiwan “introducer” – what can they do for me?
• Can I respond to an RFP from a Kazakhstan SWF?
• Do I need a license to manage money for Australian Super Funds?
• Do I need a license or exemption for a PM to visit Brunei for scheduled client performance review meetings?
  

World Compass’ Fly-in Guides features tools and applications to assist in-house teams in addressing typical day to day issues and needs.

Fly-in Quick Reference Guide (QRG)

The Fly-in QRG provides a “traffic light” risk-based tool to address questions around cross-border marketing activity. In some countries, there are no specific rules, laws or regulations governing these detailed questions – in other instances there may ambiguity in the application or interpretation of the rules, laws and regulations governing such matters – and therefore no definitive legal answers. Against such a background, the information in the Fly-in QRG provides a suggested reference point (from consultation with local counsel) for a risk-based approach to cross-border activities. Additionally, each Fly-in QRG features a general list of “dos and don’ts” to assist in evidencing that marketing activities conducted on a cross-border basis are not viewed as “conducting business” in the relevant country.

As with other modules on the World Compass platform, the Fly-in QRG has been optimised to be viewed ‘on the road’ via mobile devices.

This module will guide subscribers through the relevant issues and will answer real questions, such as:

• Can I call a contact at a sovereign wealth fund on an unsolicited basis to arrange to meet?
• Can I take a marketing deck to a meeting with a client in their country?
• A prospect has requested information on our funds – can I send that to them?
• Can I cold call a prospect from outside their country?
• What handouts can I take to an industry conference?
• Can I invite my contact at a national bank to lunch?
  

World Compass’ wrap accounts module covers the provision of portfolio management services through separately managed account programs sponsored by a broker-dealer or other financial institutions (known as “wrap accounts”). It examines the extent to which an investment advisor can participate in programs on a cross-border basis without triggering local licensing or regulatory issues. It also provides guidance on related topics, such as providing model portfolios or accounts.

This module will guide subscribers through the relevant issues and will answer real questions, such as:

• What types of SMA programs can I participate in Australia without requiring a local license?
• Does it make any difference if I only target “institutional” clients?
• Can the sponsor of a wrap program in Latam meet in our head office in New York?
• Are there any requirements that would restrict the adviser from buying certain securities?
  

Clients are often involved in cross-border commercial lending and debt activities – for example, where an alternative investment fund (AIF) originates loans to a commercial borrower or engages in secondary purchase of loans and/or loan restructurings. In response, World Compass provides practical guidance in key jurisdictions on relevant restrictions or licensing requirements, risks, alternative approaches where restrictions do hamper transactions, and any high level observations on significant tax issues.

This module will guide subscribers through the relevant issues and will answer real questions, such as:

• What restrictions or licensing requirements apply to an AIF carrying out commercial lending in Germany?
• Is the secondary purchase of loans restricted in Denmark?
• Are there restrictions on loan restructurings in France?
• If commercial lending by an AIF is restricted in Hong Kong SAR, what alternative approaches are possible?
  

The U.S. pay-to-play / procurement lobbying module provides summaries of certain procurement lobbyist registration requirements in select jurisdictions in the United States. When seeking to solicit business from a U.S. retirement pension plan of a state, county, city or other municipality in the United States, lobbyist registration requirements may apply to the asset managers and broker-dealers as well as their employees, affiliates, or placement agents. Using this dedicated resource to navigate and understand these laws will help asset managers and broker-dealers make more informed decisions prior to communicating with such pension plans. The module includes summaries of the procurement lobbyist registration requirements in over 50 state, county and city jurisdictions, including the State of California and the key cities and counties therein (such as the City of Los Angeles, the County of Los Angeles, Orange County, and the City and County of San Francisco), the State of Texas, the State of New York and New York City.

This module will guide subscribers through the relevant issues and answer questions such as:

• How do lobbying laws impact solicitation of public pension plans?
• What are the minimum contact, contract value, contribution, or expenditure thresholds for registration?
• What is the timing of initial registration (for example, prior to contacting the pension plan or within five days of contact)?
• If lobbyist registration is required, to whom and via what method is the registration submitted?
• Are there any periodic reporting or other requirements that are applicable to registered lobbyists?

This module also includes a summary of the U.S. Securities and Exchange Commission’s “pay-to-play” rule, which imposes special restrictions on the political activities of asset managers that seek to do business with retirement pension plans of a state, county, city or other municipality in the United States.