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25 June 2014 |
VEGAS LEX on recent disputes on asset management market
The discussion focused on several high-profile disputes on the asset management market that took place over the last few years, the main financial risks faced by the market players and ways to minimize those risks by using legal instruments.
VEGAS LEX speakers included Managing Partner Alexander Sitnikov, head of Dispute Resolution Practice Kirill Trukhanov and head of Commercial Practice. The experts discussed the collection of actual damage and lost profits from the management company that has violated the asset management agreement terms or the safe custody of the managed assets principle, and disputes over improper valuation of a closed-end investment fund property. In his opening remarks, Mr. Sitnikov said that concerns often arise in dealing with asset management companies. «These include evaluation, compensation, lost profits, and claims related to asset management. These issues often cause controversy between the market players», he said. «These issues call for broad discussion, and they certainly need to be raised in the professional community». Alexei Okhlopkov, president of the Khanty-Mansi Non-Government Pension Fund, spoke about the types and sources of risks, risk management tools and the main problems in asset management agreements. «The best risk management practice, I think, is to work out a robust investment declaration and a clear asset management agreement. We have revised these documents several times to incorporate risk management tools and ensure convenient interaction of the parties. We are ready to share our experience with colleagues. They may find our ideas useful. Our documents may help them resolve some issues and guide them faster along the way we have gone over several years», he said. President of the National League of Management Companies Dmitry Aleksandrov was invited as a guest speaker. The event was attended by chief executives and legal department heads of non-state pension funds, and civil officials. *** For more information on VEGAS LEX’s dispute resolution services, including on the asset management market, please click here. |
