Overview
Certain institutional clients, including nonprofits, foundations, endowments, government entities, tribal organizations, public universities, and other higher education institutions, present unique challenges for broker-dealers and investment advisers. These client organizations are often subject to complex federal, state, and local laws governing the investment and management of their assets that can be reflected in Investment Policy Statements (IPS). Depending on the firm's role as outsourced chief investment officer (CIO), investment adviser, investment manager, consultant or custodian, different legal and operational restrictions may also apply. In some jurisdictions, violations of laws applicable to public or quasi-public funds can result in significant civil and/or criminal liability.
Bressler helps firms assess and manage the risks presented by opening and maintaining accounts for such institutional clients by evaluating the legal, institutional, and operational implications of servicing such clients. Our reviews often include evaluating institutional clients’ requests for proposals (RFPs), client investment policies, organizational documents, account agreements, account statements, applicable statutes, regulations, local laws, funding grants, and/or organizational policy restrictions. We advise clients on the controls, policies, and oversight frameworks needed to support compliant service offerings, assist in developing suggested amendments to investment policies or additional terms and conditions designed to allocate risk and responsibilities appropriately, and ensure operationally feasible, in compliance with applicable legal requirements.