1 / 10

The EVCA Handbook of Professional Standards Raising Awareness: A short briefing

The EVCA Handbook of Professional Standards Raising Awareness: A short briefing. The EVCA: your association Membership obligations Origin of the Code of Conduct and the Handbook The Code of Conduct The Handbook Interaction with other standards, best practice and regulations

tehya
Download Presentation

The EVCA Handbook of Professional Standards Raising Awareness: A short briefing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The EVCA Handbook of Professional Standards Raising Awareness: A short briefing

  2. The EVCA: your association Membership obligations Origin of the Code of Conduct and the Handbook The Code of Conduct The Handbook Interaction with other standards, best practice and regulations Practical use of the Handbook: case study Q & A Contents

  3. EVCA: The European industry’s voice The EVCA is private equity’s only pan-European association bringing together GPs, LPs and associated professions (1,200 members) The EVCA incorporates different platforms, representing the industry’s diversity and giving a voice to all constituents Membership is voluntary but brings obligations The EVCA represents the industry at the European political level, interacting with legislators, regulators and other stakeholders to represent the industry’s interests It works closely with the national private equity and venture capital associations to ensure a coordinated approach The EVCA seeks to promote industry standards that will support the long-term sustainability of our activities, and further the overall development of the industry in today’s environment EVCA: your association

  4. Membership Brings Obligations All EVCA member firms are obligated to adopt and follow the Code of Conduct The EVCA may sanction a firm found to be in breach of the Code with expulsion from the EVCA The Professional Standards Committee encourages member firms to ensure all professional staff are aware of the Code and the Handbook through regular trainings and briefings These processes ensure that EVCA’s professional standards have credibility Membership Obligations

  5. The Handbook is produced and distributed by the EVCA’s Professional Standards Committee, composed of practisingmembers of the EVCA: By the industry for the industry Building on a long tradition of guidance to members It incorporates guidelines on valuation and reporting, adopting internationally developed standards where the EVCA or its members have a leading voice The Handbook focuses on private equity core relationships: LPs and GPs GPs and portfolio companies The industry and society It sets out the basis for the industry’s views on and behaviour in relation to: Responsible investment Accountability Governance Transparency Origin of the Code of Conduct and the Handbook

  6. The Code of Conduct Act with integrity Keep your promises Disclose conflicts of interest Act in fairness Maintain confidentiality Do no harm to the Industry Simple principles that transcend the industry’s activities and relationships Derived from an international code of conduct Applicable to all segments of the industry and all participants An easy mental checklist for responsible behaviour The Code of Conduct

  7. The Handbook Section 1: Code of Conduct Section 2: Commentary on the Code of Conduct Section 3: Guidance on the Application of the Code of Conduct: Fund formation and liquidation, Investing, Portfolio management, LP relations and more Glossary Standards addressing specific issues: Code for placement agents, reporting and valuation guidelines The Handbook aims to help members exercise business judgment and act with integrity It provides guidance on all aspects of the business throughout the life cycle of the fund Practical Q&A format responds to practical, real life situations The Handbook

  8. The Handbook incorporates standards set by international bodies for: (Investor) Reporting Valuation These represent the EVCA’s endorsement for its members and reflect a high degree of involvement by the EVCA in the setting of these standards Membership of the EVCA also implies adherence to these standards The Handbook is reviewed by the Professional Standards Committee annually and updates are published via www.evca.eu Interaction with other standards, best practice and regulations

  9. Case study In raising my next fund, one of the potential investors has proposed arrangements which would provide it with additional input into the investment decision making process. Should I accept? Code of Conduct Principle: Act in Fairness, Disclose Conflicts Handbook Guidance: 3.2.6 “Whenever possible, the GP should try to ensure that the LPs in the Fund benefit from equal treatment… Different terms can be offered… But should be justifiable… [A]ny preferential treatment should be clearly disclosed…” Practical use of the Handbook

  10. Questions? Q&A

More Related