Key members: Richard Whelehan, head of legal – funds and Kevin Cassidy, head of legal – corporate

What are the most significant cases and transactions that your legal team has recently been involved in?

Abbey Capital provides investment management services to alternative investment funds domiciled in several different jurisdictions (the ‘Funds’). The Funds are structured as multi-manager funds combining multiple commodity trading advisors (‘CTAs’) and managed futures strategies. Collectively, the Funds have investor bases that stretch throughout North America, Europe, and Asia.

The significant transactions we have recently completed involved changes to existing fund structures, the creation of new fund structures, and the onboarding of new service providers (including brokers and underlying CTAs). In addition to the negotiation of contractual terms and the drafting of appropriate documents, these tasks necessitated the consideration of different jurisdictional requirements. Sound judgement and a clear view of the commercial issues was needed in these transactions. In addition, clear and concise communication, both with internal stakeholders and with external counterparties and legal advisers, was key to completing these tasks.

What has been the number one challenge that has impacted you over the past year?

There are always challenges in addressing differing jurisdictional requirements. In some instances, for operational ease and to ensure compliance, the most restrictive requirement of any one jurisdiction may need to become the standard policy internally (even though the requirement may not apply in all jurisdictions). This means that a relatively large suite of documents and existing processes may need to be reviewed or amended due to a change in one jurisdiction. Irrespective of the materiality of the changes, clear communication is always necessary. Changes to what are sometimes very complex regulations and legislation need to be articulated in a commercial and concise manner. Where existing internal practices and processes must be updated in response to legislative changes, the legal team must be part of the solution addressing these challenges rather than simply notifying teams of the change.

Has the increasing consciousness of climate change and sustainability affected your company and the team’s priorities, and if so, how?

We exist in a world where climate change and sustainability issues are becoming more prevalent. We want to continue to be a good corporate citizen at the company level, developing and enhancing existing sustainability practices and working with our chosen foundation, charity, and sustainability partners. From a regulatory and investor perspective, when integrating sustainability risks in the investment decision-making process, the company consider ESG events and conditions in the context of the overall risk management framework used in the investment management process. The nature of the Funds’ investment strategies means that certain ESG considerations will not always apply. This can become an issue when addressing standardised counterparty due diligence questionnaires regarding ESG.