AMSTERDAM – LAWFUEL – Law Firm News – Allen & Overy said today the EUR40 billion outsourcing of AEGON investment management’s middle and back office operations of its Dutch affiliates was ground breaking in its efficiency and set a new benchmark likely to be followed by other asset managers.
This is one of the largest business process outsourcings to have taken place in the Dutch financial market. The transaction creates a market-first flexible investment platform which is designed to give asset managers and institutional investors an enhanced ability to respond to market changes through a transparent policy arrangement. This arrangement allows participating entities to comply with the various tax, reporting, accounting and other regulatory requirements of the jurisdictions in which their investors reside.
The transaction was additionally complex because parties are required to comply with Autoriteit Financiële Markten rules and regulations. Additionally the parties intended to design a sufficiently flexible and tax efficient securities lending and custody structure capable of operating in 29 different jurisdictions.
The transaction, building on Allen & Overy’s global experience in financial services outsourcing, required close cooperation between its Amsterdam and London offices and combined banking, tax and outsourcing expertise. The core team was led by Herald Jongen and assisted by partner Paul Phillips (Banking) and associates Alan Meneghetti, Jeroen Lub (both Technology), Hanneke Verweij (Tax) and Cristina Rocha (Corporate).
Corporate partner Herald Jongen commented: “This is a ground breaking outsourcing transaction in the financial industry. The unique pooling structure that the parties have set up, the flexibility of the structure and the coherence between the custody and second lending agreements make the structure highly efficient and we expect that more asset managers will follow this example”.