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Club Level Feature: Morgan Lewis & Bockius LLP

‘BREALITY CHECK’—BREXIT UPDATEs AND THIRD COUNTRY PASSPORTING IMPLICATIONS

By: Morgan Lewis Partners Simon Currie and William Yonge

Recent April 2017 Update

On 24 January 2017, the UK Supreme Court by a majority of 8-3 found that the UK government could not decide to trigger withdrawal from the EU under the relevant Treaty without the prior approval of Parliament. In early March, the UK Parliament confirmed the result of the referendum on 23 June 2016 by voting in both Houses in favour of the European Union (Notification of Withdrawal) Bill which received the Royal Assent on 16 March. On 29 March, just over 44 years since the UK joined what was then called the European Economic Community on 1 January 1973, Prime Minister May notified the European Council in accordance with Article 50(2) of the Treaty on European Union of the UK’s intention to withdraw from the EU. The UK government’s Department for Exiting the European Union then published a White Paper entitled “Legislating for the United Kingdom’s withdrawal from the European Union” in which it published its plans to bring to Parliament a Great Repeal Bill which will repeal the European Communities Act 1972, the statute that gives effect to EU law under UK law and renders EU law supreme over UK law; that repeal will take place on the day the UK leaves the EU and the Great Repeal Bill will also convert EU law as it applies in the UK into UK domestic law to facilitate an orderly transition and confer powers on the UK Government to correct or remove the laws that would otherwise not function properly once the UK has left the EU on a case by case basis from time to time.

There are three stages of Brexit, the first being the period that occurred prior to the UK submitting notice of its intention to withdraw. Stage two began when the government gave notice to the EU of its intention to exit the EU and began the process of exiting. Stage two will be by far the most significant stage embodying the UK-EU negotiations for Brexit, which will shape UK-EU relations and Britain’s post-Brexit future for decades to come. The timetable for that process is initially set at two years, but with power to extend. Strictly in terms of EU legality, stage three is when the exit process is complete and the UK is able to “go it alone” in negotiating its post-Brexit future with the rest of the world; however, the UK is understandably reluctant to wait for the actual exit before embarking on stage three, which will last for years, so will begin stage three early (or, at least, early in the eyes of the EU) once it has given notice to quit. The reality is that, overall, although an exit from the EU will be on a two year time frame, the entire process could last five to ten years.

Any Brexit deal will encompass a wide range of workstreams covering Britain’s legal separation from the EU; a withdrawal agreement under which existing assets and liabilities will be allocated; a free trade agreement covering the UK’s future relationship with the EU (EU-UK FTA); a transitional phase between Brexit and commencement of the EU-UK FTA; accession to full membership of the World Trade Organisation; new free trade agreements to replace those between the EU and 53 other countries; and cooperation in the realms of defence, foreign policy, and security. Negotiation of fair and mutual transitional arrangements will be key for the economies of the UK and the EU to avoid adverse results of the “cliff edge” variety upon the UK’s exit.

There is a spectrum of possible outcomes of any Brexit deal, bookended by “hard Brexit” and “soft Brexit”. However, neither of those terms can clearly be defined. Some define “hard Brexit” as rejecting privileged access to the EU single market in return for submitting to some EU laws and institutions, While the swirl of day-by-day posturing, partisan commentary, and reluctance of the UK and EU authorities to reveal their negotiating hands make it challenging to discern probable routes forward and plan accordingly, there is no reason why even a “hard Brexit” cannot encompass access to the single market for financial services companies.

 

In this article, we explore how the established EU concept of third country passporting for financial services firms could mitigate the adverse effects of any exit from the EU single market for London as a leading world financial centre.

Passporting

The City of London is one of the world’s leading financial centres, vying only with New York City for the top spot. As such, many financial services firms choose the UK to headquarter their businesses, anchoring themselves in a convenient time zone and location from which to access the European and global markets. Post-referendum, the primary concern of financial services professionals is whether they will be able to continue to access the European single market for financial services. This begs the question of whether the UK, in its Brexit trade deal negotiations, will accept the fundamental European principle of the free movement of people in order to gain such access.

The importance of the EU passport and access to the single market should not be underestimated. According to the European Banking Authority, there are more than 2,000 UK investment firms carrying on Markets in Financial Instruments Directive (MiFID) business which benefit from an outbound MiFID passport:

  • Nearly 75% of all MiFID outbound passporting by firms across the EU is undertaken by UK firms into the EEA;
  • 2,079 UK firms use the MiFID passport to access markets in other EU countries; and
  • more than 50% of all investment firms authorised under MiFID are based in the UK.

 

In addition, the European Securities and Markets Authority’s (ESMA’s) opinion of 30 July 2015 on the functioning of the Alternative Investment Fund Managers Directive (AIFMD) passport noted that out of 7,868 AIFs notified for marketing in other EU member states, including sub-funds of umbrella AIFs, 63.8% of those (5,027 AIFs) were from the UK.

In addition, out of the 1,777 non-EU AIFMs marketing AIFs in EU member states, 1,013 (57%) were marketing AIFs in the UK. The figures are clear—the UK generates a significant proportion of the EU’s MiFID and AIFMD passporting business. Conversely, the UK financial services sector benefits hugely from the EU passport and access to the single market. For completeness, passporting rights also exist under the Insurance Mediation Directive, Mortgage Credit Directive, Electronic Money Directive, Capital Requirements Directive and Solvency II. However, those directives are outside the scope of this article.

In a recent wider analysis by the UK Financial Conduct Authority (FCA) which took into account all the passporting directives, FCA found the following:

 

Total Inbound from

EU27 into UK

Outbound from

UK into EU27

Number of passports in total 359,953 23,532 336,421
Number of firms using passporting 13,484 8,008 5,476

 

Many firms hold more than one passport; hence, there are significantly more passports than firms.

The optimal outcome for UK financial services firms that wish to retain their current access to the single market in financial services would be a bespoke deal, but if not achievable, the third country passport can mitigate the issues arising from withdrawal of passporting rights.

Upon the UK’s withdrawal from the EU, the passporting regime will, broadly, cease to apply to UK-authorised firms. In other words, the following will be the case:

  • Investment firms, banks, and fund managers will no longer be able to passport into, or establish branches in, the remaining EU member states.
  • Firms will not be able to market Undertakings for Collective Investment in Transferable Securities (UCITS) and AIFs EU-wide on a passported basis.
  • Firms will only be able to market AIFs EU-wide using local private placement regimes.
  • Investment managers will need to acquire local authorizations to conduct investment activities in each EU member state in which they operate.
  • Many investment firms, banks, and fund managers would need to consider whether to relocate their base of operations in an EU country while retaining a substantial UK foothold in order to retain the passport.

Options if the UK Does Not Negotiate Continuing Access to the Single Market

The EU has already recognised the concept of non-EU or third country access to the passport, provided that stringent (but, in our opinion, entirely achievable) conditions are met. The best current examples of that are the AIFMD, the European Market Infrastructure Regulation (EMIR), and to some extent, the Prospectus Directive. In addition, MiFID II—due to come into force in January 2018—provides for such access, albeit in the non-retail sector only. However, the UCITS regime does not envisage the extension of its regime to non-EU countries, as by definition UCITS and their managers must be domiciled in the EU.

AIFMD Third Country Passport

AIFMD contemplates that non-EU AIFMs in eligible third countries may benefit from the right to manage AIFs and/or market units or shares of AIFs throughout the EU with a passport. At present, no such passports have been granted. However, the process for doing so is well underway. Canada, Guernsey, Japan, Jersey, and Switzerland have recently been given a “favourable opinion” by the ESMA in its advice to the European Commission on the extension of the AIFMD passport. In addition, ESMA has given favourable but qualified opinions regarding the same in respect of Australia, Hong Kong, Singapore, and the United States, but has not yet been able to provide definitive advice in relation to Bermuda, the Cayman Islands, and the Isle of Man. The Commission is deliberating on the timing, and it is not clear when the third country passport will become available to AIFs and AIFMs based in a third country that has already been given a favourable opinion by ESMA.

If the UK was to leave its current AIFMD-compliant regime in place, it ought to be technically straightforward, following Brexit, for the AIFMD passport to be extended to the UK. If so, UK AIFMs managing EU AIFs and/or non-EU AIFs could become authorised under AIFMD by achieving authorised status in an EU country and could continue to use marketing and management passports subject to a positive opinion from ESMA and a decision by the Commission that the UK qualifies for such treatment under the applicable criteria. However, political considerations would be inherent within any such decision and would likely complicate it.

MiFID II Third Country Passport

The Markets in Financial Instruments Regulation (MiFIR), which is due to come into force in January 2018 (and forms part of the MiFID II regime), entitles “third country” investment firms to provide investment services only to professional clients across the EU upon registration with ESMA. Registration will be contingent upon a range of conditions, including a decision made by the Commission that the relevant third country’s prudential and business conduct framework is equivalent to EU standards.

Would the UK pass the third country test?

In our opinion, yes. On 24 June, the FCA made it clear that firms are to continue down the road to implementation and are to comply with all EU legislation until further notice. As such, if the UK implements in full the provisions of MiFID II, it ought to be a relatively simple process, following Brexit, for the MiFID II passport to be extended to the UK, thus providing firms with non-retail single market access. However, political considerations could trump that.

EMIR Third Country Passport

EMIR is the product of an international initiative of the G20 developed in the wake of the Great Recession. With this in mind, the UK is unlikely to want to unravel EMIR post-Brexit. Since in a post-Brexit world a UK undertaking would no longer be established in the EU, under EMIR, UK undertakings that are currently financial counterparties or non-financial counterparties would become third country entities (TCEs) for EMIR purposes and no longer directly subject to EMIR. However, EMIR does impact TCEs when they trade with EU counterparties, and to that extent EMIR will continue to impact the same post-Brexit.

The City of London boasts some of the world’s largest clearing houses, and at least three of them are currently permitted under EMIR to provide clearing services to clearing members and trading venues throughout the EU in their capacity as ESMA-authorised central counterparties (CCPs). Post-Brexit, however, a UK CCP would become a third country CCP. Under EMIR, a third country CCP can only provide clearing services to clearing members or trading venues established in the EU where that CCP is specifically recognised by ESMA. This would require, among other things, clearing houses operating out of London to apply to ESMA for recognition, the Commission to pass an implementing act on the equivalence of the UK’s regime to EMIR, and relevant cooperation arrangements to be put in place between the EU and the UK—a lengthy process overall and one thrown into doubt by Brexit.

Encouragingly for the UK, since 27 April 2015, 19 third country CCPs have been recognised by ESMA emanating from Australia, Canada, Japan, Hong Kong, Mexico, Singapore, South Africa, South Korea, Switzerland, and most recently the United States. Clearly, there is an appetite within ESMA and the EU for third country CCPs to provide services within the EU, and post-Brexit, we believe that financial institutions based in the EU will certainly want to continue to access UK regulated markets and CCPs.

Prospectus Directive Third Country Passport

As an EU member state, the UK is currently a participant in the Prospectus Directive’s passporting regime for prospectuses. Any failure by the UK to secure continued access to the single market would bring challenges. Notably, prospectuses approved in an EU member state in connection with a listing on a regulated market in that member state would need to be recognised by the FCA in order to be approved for UK listing purposes. Conversely, prospectuses approved in the UK would need to be approved afresh by the regulatory authority in an EU member state under applicable Prospectus Directive standards for the prospectus to be used for a listing on a regulated market in that state.

However, under the Prospectus Directive, an EU member state regulator is able to approve a prospectus approved in a “third country” if the Commission is satisfied that the prospectus was drawn up in accordance with international standards, and that the relevant third country’s prospectus content requirements were equivalent to those in the Prospectus Directive. Provided the UK’s prospectus requirements do not change dramatically from what are currently in place, we believe that the UK’s requirements should be considered equivalent to the Prospectus Directive requirements for the purposes of listing in the EU.

UCITS

UCITS funds and their managers (but not necessarily the delegates of their managers), by definition, must be domiciled in the EU. Unlike AIFMD, EMIR, MiFID II and the Prospectus Directive, the UCITS regime does not envisage the extension of its regime to non-EU countries. In other words, UK UCITS funds would no longer qualify as UCITS. Instead, UCITS would become AIFs. This means that UK-based UCITS funds would no longer be automatically marketable to the public in the EU and would therefore become subject to local private placement regimes. Conversely, a UCITS fund established, say, in Ireland or Luxembourg, would no longer be marketable in the UK to the general public, and a management company based in Ireland or Dublin would no longer be entitled to provide management services to a UK-based UCITS fund.

During any Brexit negotiations, insertion of a “third country” equivalence test into the UCITS regime may be used as leverage by the EU negotiating team in exchange for concessions by the UK. Any third country equivalence regime that is substantially similar to that under AIFMD and MiFID II would be well received in the City of London and would provide the necessary reassurance for financial services firms operating in the UCITS space.

What Should You Be Doing Now?

There are a number of actions we recommend that firms consider taking in order to prepare for the eventuality of Brexit:

  1. Monitor Brexit developments and consult your legal services providers to help you understand these developments as they unfold.
  2. Develop a contingency plan for a “hard Brexit” and how to respond to withdrawal of passporting rights and the absence of a third country equivalent mitigant.
  3. Consider a review of your existing contracts:
  • The jurisdictional scope of your contracts may be limited. The definition of “EEA” may need to be redefined to continue to cover the UK in the event of Brexit.
  • Current investment strategies may require updating. In particular, investment strategies that permit investments in the EEA may need to be amended in order for investments in the UK to continue to be permitted.
  • There may be force majeure implications. Uncertainty may drive parties to look for an exit from contracts that are no longer profitable or are underperforming. EU law provisions may render contracts incapable of being performed as originally anticipated. Parties looking for flexibility in such circumstances should consider including Brexit in their force majeure provisions.
  • Termination rights. Those wishing for the option to withdraw from potentially loss-making contracts should consider drafting termination rights which will apply in the event of a Brexit (i.e., consider drafting and quantifying withdrawal rights in the event of a “material adverse financial event/downturn” in the markets).
  1. Lobby the UK government:
  • We recommend lobbying the UK government, either directly or through your relevant trade association, to ensure that your voice is heard and that key financial services sector considerations will be on the agenda when a Brexit deal is negotiated.
  • In addition to the range of sectoral trade associations, there are various lobby groups in existence, such as TheCityUK, whose aim is to preserve access to the European markets; the European Financial Services Chairmen’s Advisory Committee which is chaired by Shriti Vadera, former Labour business minister, and the Financial Services Negotiation Forum.

Resources

For further information on the implications of Brexit, please visit Morgan Lewis’s Brexit Resource Centre.

Contacts

If you have any questions or would like more information on the issues discussed in this LawFlash, please contact any of the following Morgan Lewis lawyers:
US

Michael Pedrick

London

Simon Currie

William Yonge

 

About Morgan Lewis

Morgan Lewis offers more than 2,200 lawyers, patent agents, benefits advisers, regulatory scientists, and other specialists in 30 offices* across North America, Asia, Europe, and the Middle East. The firm provides comprehensive litigation, corporate, transactional, regulatory, intellectual property, and labor and employment legal services to clients of all sizes—from globally established industry leaders to just-conceived start-ups.

 

 


BABC New Member: Spring 2017

John Connolly

Willis Towers Watson
5 Radnor Corporate Center
Radnor, PA 19087
P: 610-212-0680
E: john.a.connolly@willistowerswatson.com


Human Interest Feature: Navigating the New World

2017 BABC Transatlantic Conference – Navigating the New World
By Alicia Talucci, BABC Coordinator

Every year, the British American Business Council picks a chapter to host its Transatlantic Conference. This year the Transatlantic Conference will be held in “The Windy City”. Chicago will host participants on May 10-11, 2017 for an invigorating discussion based on the thought leadership of Senior Executives.

This year’s theme will be “Navigating the New World,” a perfect sentiment to the changing international economic climate. The majority of the focus will be on the new opportunities presented to the US, Canada, & Europe, the realities these countries will face upon new trade agreements, changing economies, and new leadership and governance.

Many are buzzing about the relevance this particular conference has in light of so many changes around the world. CEO of the British American Business Council, Jeffries Briginshaw said, “This yearly conference brings together our UK-US business network to offer thought-leadership and substantive networking. Now, more than ever, business leaders are seeking connections with each other and engagement with local governments on both side of the Atlantic, in order to better navigate an uncertain global future.”

Laurence Geller, Chairman, 2017 Transatlantic Conference said, “It is this backdrop of uncertainty and change that makes BABC’s Annual Transatlantic Conference so exceedingly important. With Thought Leadership as its underlying theme, the discussions will not only inform, identify the power and relevance of strategic partnerships and, without a doubt, provide an important voice in the policy debates proliferating on both sides of the Atlantic.”

This year’s conference follows two very successful conferences in London and New York. Engage with over 2,000 member companies from 22 chapters worldwide. Build valuable business connections, and connect with experts to shed light on the exciting future that lies ahead.

To register and for a full comprehensive list of speakers and topics, please click here.

 


Club Level Feature: Pepper Hamilton LLP

Pepper Hamilton LLP — A Commitment to Diversity

Pepper Hamilton LLP, a multipractice law firm with more than 450 lawyers nationally, provides corporate, litigation and regulatory legal services to leading businesses, governmental entities, nonprofit organizations and individuals throughout the nation and the world. Its diverse group of lawyers includes women, attorneys of color, members of the LGBT community and their allies, and attorneys with disabilities.

The firm is committed to advancing diversity and inclusion and works continuously to expand and promote opportunities for its lawyers and staff. These firm wide efforts — which are led by Partner in Charge of Diversity Kassem L. Lucas — include several affinity groups that offer support and programming for Pepper’s diverse community. These groups include the African-American/Black Affinity Group, Pepper Pride, the Veterans Group, the Pepper Latina/o Caucus and the Women’s Initiative (WIN).

The last year has been a particularly exciting one for WIN, which selected new leaders — partners Stephanie Pindyck Costantino, Yvonne M. McKenzie and Sara B. Richman — to continue WIN’s tradition of recruiting, promoting and supporting Pepper’s female attorneys. Some of WIN’s recent activities include attending the Pennsylvania Conference for Women with Pepper clients, sponsoring the Alex’s Lemonade Stand Lemon Run, and authoring an article on the under-representation of women in law for The Legal Intelligencer.

WIN is just one example of Pepper’s leading role in advancing and supporting women in the legal industry. From the firm’s first female partner, elected in 1960, to Nina M. Gussack being named as the first female chair of the Executive Committee in 2007, Pepper’s women have been trailblazers in taking on leadership roles in the firm while providing exceptional service to their clients. In 2016, the firm took another step forward by electing its first all-woman class of new partners and of counsel. In November, Abigail A. Hazlett (White Collar Litigation and Investigations), Shirley R. Kuhlmann (Corporate and Securities), Judith L. O’Grady (Health Effects Litigation) and Nilufer R. Shaikh (Corporate and Securities) were elected to the partnership, and Tracey E. Diamond (Labor and Employment) and Jessica A. Rickabaugh (Health Effects Litigation) were elected of counsel. For more information please visit www.pepperlaw.com.


Human Interest Feature: Paul McConnell

Paul McConnell: The Power of Education and Economic Development

By Alicia Talucci, BABC Coordinator

Paul McConnell is proof of the American Dream. The year is 1974, and Paul is graduating from the University of Delaware. Paul and his brother had just started their business McConnell Brothers Inc. Prior to officially starting their business, the brothers worked together in construction to make money. Upon graduation, they had enough funds to buy their first property, fix it up, and sell it.  Then they bought two more.  Within the first five years of working together, they had renovated more than 100 homes. Since then, Paul has continuously developed properties, and his development projects now total more than five million square feet.

Paul attributes his success to working hard, networking, and staying current. “My success has been based on a lot of people helping me.  I’ve been very fortunate in that regard.”  He says, to be successful in business, you must constantly work with other people that can bring something else to the table.  Developing partnerships, working well, and communicating with others is the key.  At one point in his career, he had more than 100 partnerships.  He is also constantly brainstorming new ideas, and reading as much as possible.  Currently, Paul is dedicated to education and economic development; an area he has promoted and supported during the past several years.

Paul, the current CEO of McConnell Johnson Real Estate LLC, BABC Board and Club Level Member, realizes the importance of uniting education and economic development. Paul has spent the last four decades becoming an inspiration for innovation, especially for aspiring entrepreneurs.  Paul has started several programs for economically disadvantaged youth as well as those with learning differences.  Most recently, his Alma Mater created the Paul and Linda McConnell Youth Entrepreneurship Initiative.  The goal of the initiative is to cultivate the belief that entrepreneurship can lead to a successful career, using education to develop that success, especially in youth.  “Universities are all about the future. When you see the universities connect, and then business, it just creates this great atmosphere for talent, thinking, and doing.”  The Initiative creates opportunities for students to flourish.  Today, there are more than 3,000 students from 35 countries involved in the program.

A prosperous entrepreneur, Paul was inducted into the Delaware Business Hall of Fame in October 2016. The night was not only commemorative to Paul’s success, but special to him as he was inducted with his own mentor, former President of Commerce Bank Delaware, Fred Sears.  Sears not only inspired Paul to get involved in business, but he helped finance Paul’s business.  The two met Paul’s sophomore year of college at his fraternity where Fred was a guest speaker.  As a political science major, Paul helped run Fred’s campaign when he was Director of Economic Development for the City of Wilmington.  The rest is history.

Paul has been a major influencer in both the real estate development and start-up communities in Wilmington and the surrounding areas, founding 1313 Innovation along the way. 1313 Innovation’s mission is to “cultivate an environment of partnership; providing mentoring and education that attracts and develops talent for a stronger community,” a true testament to his goals of cultivating education and economic development.

McConnell Johnson Real Estate LLC joined the BABC in 2011 because the UK is one of Delaware’s largest trading partners. “There are a lot of international businesses in Wilmington.  Flights are easy back and forth, so why not foster those relationships.”  In February 2016, the company became a Club Level Member, and is a major participant in events.  The BABC has provided valuable introductions and networking opportunities for Delawareans in an international setting, and has attracted top talent in the region to open greater opportunities.

While some consider the close proximity to Philadelphia, Washington DC, and New York City a threat, Paul considers Delaware’s proximity an opportunity. “We definitely don’t want to take business from Philadelphia; we want a more collaborative effort.”  With the entertainment, restaurants, and housing boom in Philadelphia, Paul believes the import of talent for jobs and the export of talent for recreation and entertainment aspect can be a challenge.  “70% of our millennials that work here live in Philadelphia.  We have the banking and tech jobs, but we want to have both.”  Along with banking and technology jobs, Delaware provides one of the nation’s top life sciences and pharmaceutical job opportunities.  Together, Delaware, Pennsylvania, and New Jersey represent more than 80% of the US pharmaceutical industry.

Along with excellent professional opportunities in finance and health sectors, among others, Delaware has been a business-oriented state for the majority of its history. The legal and tax systems are very beneficial toward corporate business.  Delaware boasts a low corporate tax rate at just 8.7%, no sales or personal property tax at the state or local level, and no inventory tax.  The business scene has always been very open to international relations.  Easy access to seaports and airports allow Wilmington’s international trade partners to continue to be successful.  “Most recently, many of the pharma companies and start-ups have come from international (companies).  DuPont was one of the first companies to build a manufacturing plant in China,” explained Paul.  The long standing culture of international partnership as well as the tax and legal advantages given to businesses in the state of Delaware has made Wilmington the ideal place for many businesses to call home.

With Brexit as well as the results of the November 2016 Election, there is a positive future. However, one thing that Paul is sure of is the effect education will have on growth of business and a bright future for the area.  “This region is poised to take off.  We have connected education to our business community.  I think we are more connected today than we have ever been, and I don’t think this election will set us back.  It may accelerate certain change, but maybe people will be open to new ideas,” he explained.  At the university level, the most challenging issue is the high cost of education.  But Paul has an idea for that too, “Maybe there are different programs that can be sponsored by business, or maybe different ways industry can connect to the universities to help defray the crazy cost escalation that has occurred.”

From his work ethic to his philanthropic attitude, no one can deny the impact Paul McConnell has had on those around him. He has worked to build his business from the ground up, and is now looking long term to expand the future for great minds.  Paul’s focus on education is admirable.  He understands the future of business lies with the next generation, and he wants to continue to make Wilmington competitive, but also collaborative with the big cities that surround it.  His constant motivation to reinvent and improve his business where necessary is a lesson for all entrepreneurs.  Paul is a man who sees a bigger picture for local and international business.

The BABC is honored to work with Paul and with McConnell Johnson Real Estate. McConnell Johnson will host our annual Wilmington, Delaware event later this year.  The event brings a high ranking government official, foreign diplomats, and local business leaders together to discuss current global economic affairs, political climate, and social issues and how these factors can affect business on both sides of the Atlantic Ocean.  Stay tuned for the program date, speakers, and topic.

 


President’s Letter: Winter 2017

 

rhett-workman

Dear BABC Members and Friends,

Happy New Year! As we say in my trade, I hope 2017 is off to a flying start.  I am pleased to report the BABC ended both the old and started the new calendar years by giving back to the community.  Our Annual Holiday Luncheon raised funds for the Bicentennial Bell Park restoration, and on Martin Luther King Day our Young Professionals Group hosted a service project at Kingsessing Community Center in West Philadelphia.  Community connections are very important to us.  We are part of a vibrant, City culture, and enjoy working with people from all sectors to enhance our ties and make valuable contributions locally and abroad.

The BABC network works diligently to deliver worthwhile educational programs, networking events and information. Did you know the US and UK are each other’s largest investors?  Together we have approximately $1 trillion invested in each other’s economies.  Our Chapter is part of the biggest transatlantic business network of more than 22 organizations and more than 2,000 member companies based in major business centers throughout North America and the UK.  Members include the world’s largest multinationals as well as thousands of middle market and privately held entities across industry sectors.

BABC London is publishing a series of fact sheets for the UK’s top trading regions in the US. The Philadelphia file was the first one completed.  Please click here  to see the report. It is good to see that the region our chapter covers is one of the most vibrant US-UK trading areas in the country, underscoring the importance of our work in the BABC.

BABC members receive access to the who’s who of international business locally and internationally; discounted tickets to events; speaking opportunities; thought leadership pieces; opportunities to connect with UK government officials, and to develop business ties with leading professionals, among other benefits. I encourage you to read this newsletter for a recap of all recent past and upcoming activities.  If you are not a member and would like to learn more, please contact us.

Thank you and very best wishes for a prosperous 2017.

Rhett Workman Signature

Rhett D. Workman

President, British American Business Council of Greater Philadelphia

 


BABC New Members Fall 2016

Club Level Member:

Pepper Hamilton LLP

James B. Jumper, Esq.
Partner
400 Berwyn Park
899 Cassatt Road
Berwyn, PA 19312
P: 610-640-7815
F: 866-241-5458
E: jumperj@pepperlaw.com

James D. Epstein, Esq.
Partner
3000 Two Logan Square
18th & Arch Streets
Philadelphia, PA 19103
P: 215-981-4368
F: 215-981-4750
E: epsteinj@pepperlaw.com

Aline Fairweather, Esq.
Partner
3000 Two Logan Square
18th & Arch Streets
Philadelphia, PA 19103
P: 215-981-4807
F: 215-981-4750
E: fairweathera@pepperlaw.com

Elizabeth R. Tabas Carson, Esq.
Associate
3000 Two Logan Square
18th & Arch Streets
Philadelphia, PA 19103
P: 215-981-4641
F: 215-981-4750
E: tabase@pepperlaw.com

www.pepperlaw.com
E: phinfo@pepperlaw.com

Pepper Hamilton LLP is a multi-practice law firm with 500 lawyers nationally. The firm provides corporate, litigation and regulatory legal services to leading businesses, governmental entities, nonprofit organizations, and individuals throughout the nation and the world.  Our firm is a sophisticated, large law firm with a national and international practice.  We retain traditional values passed down through the decades: respect for the rule of law, pride in an excellent work product and commitment to the client’s cause.  Today, Pepper Hamilton is a diverse firm of men and women from a broad spectrum of backgrounds, united in these values.

 

Corporate Member:

Cozen O’Connor

Lori Scheetz
Director of Marketing
P: 215- 665-2000
F: 215-665-2013
E: lscheetz@cozen.com

Matt Siegel
Member
P: 215- 665-2000
F: 215-665-2013
E: msiegel@cozen.com

Camile Miller
Co-Chair, Intelectual Property Department
P: 215- 665-7273
F: 215-701-2273
E: cmiller@cozen.com

David Walton
Member
P: 215- 665-5547
F: 215-701-2110
E: dwalton@cozen.com

Larry Laubach
Chair, Corporate Practice Group
P: 215- 665-4666
F: 215-701-2346
E: llaubach@cozen.com

Bernard Lee
Co-Chair, Real Estate
P: 215- 665-6961
F: 215-665-2013
E: blee@cozen.com

Jeffrey Weil
Co-Chair, Litigation Section Chair, Commercial Litigation Department
P: 215- 665-5582
F: 215-655-2013
E: jweil@cozen.com

Blake Rutherford
Counsel
P: 215- 665-6909
F: 215-655-2013
E: brutherford@cozen.com

Lisa Haas
Chief Marketing Officer
P: 215- 665-2792
F: 215-701-2492
E: lhaas@cozen.com

One Liberty Place
1650 Market Street
Suite 2800
Philadelphia, PA 19103

www.cozen.com

Located in the nation’s fifth-largest metropolitan area, Cozen O’Connor’s Philadelphia office serves as the firm’s headquarters. The firm was founded in Philadelphia in 1970 and has grown substantially over the years. Our offices are in the One Liberty Place building in the heart of the center city district of Philadelphia.

The attorneys in our Philadelphia office handle the gamut of business and corporate law matters, and an extensive array of commercial and insurance litigation assignments, in both state and federal courts. Many of our attorneys are admitted to practice in multiple states, accommodating clients in Pennsylvania and its bordering states. Many of our Philadelphia-based attorneys contribute to the welfare of the community by serving in leadership roles on bar associations, charitable, educational, cultural and civic organizations, and by their involvement in social service organizations.

 

Individual Members:

Jon Kirchner
Managing Director
Perfero
1619 Sweet Briar Road
Gladwyne, PA 19035
P: 610-203-9324
E: jon@perfero.co

Jason Walker
US/UK Financial Advisor
Raymond James
130 N. 18th Street
Suite 1300
Philadelphia, PA 19103
P: 610-368-9061
E: jason.walker@raymondjames.com

 

Regional Government Partner:

Tony Ceballos
Director
Philadelphia US Export Assistance Center
US Department of Commerce
US Commercial Service
P: 215-597-7141
F: 215-597-6123
E: antonio.ceballos@trade.gov

1617 JFK Blvd.
Suite 800
Philadelphia, PA 19106

www.export.gov

The Philadelphia US Export Assistance Center, a division of the US Department of Commerce’s International Trade Administration, helps connect US companies to global markets and buyers of US products and services. Through its global network the US Commercial Service provides exporters direct access to overseas markets by delivering custom-tailored products and services such as export counseling, market research, international partner matchmaking, and trade event support. Our network of 1,700 business development professionals in 100 overseas posts in 75 countries and 110 US Export Assistance Centers begins in Center City Philadelphia. Contact us to begin your international marketing efforts at www.export.gov.

 

 


BABC New Members Winter 2016

Club Level Members

Bartlett & Company Inc.

Richard Bartlett
President
P: +44-113-258-5711
C: +44-770-953-1462
E: rbartlett@bartlettgroup.com

Broodway Hall
Horsforth
Leeds LS18 4RS
United Kingdom

Patrick Riley
President
P: 215-546-9660
F: 215-546-9665
E: priley@bartlettgroup.com

1601 Market Street, Suite 2560
Philadelphia, PA 19103

www.bartlettgroup.com

Bartlett is a boutique international insurance broker with over 75 years of experience in helping global businesses manage risk. As a third-generation family owned business, Bartlett has grown organically from a one-man office in the north of England to a multinational broker with offices in the United States, United Kingdom, Continental Europe, Africa, Asia and Australia. With nine offices and 42 individually vetted broker partners, our international presence and experience uniquely position us to handle complex multinational insurance programs for companies in the middle-market space.

 

Corporate Member

Hill International, Inc.
David L. Richter
President & CEO
P: 215-309-7701
E: davidrichter@hillintl.com
One Commerce Square
2005 Market Street
17th Floor
Philadelphia, PA 19103
www.hillintl.com

Hill International, with 4,800 professionals in 100 offices worldwide, provides program management, construction management, construction claims and other consulting services primarily to the buildings, transportation, environmental, energy, and industrial markets. Engineering News-Record magazine recently ranked Hill as the seventh largest construction management firm in the United States.

 

WSP | Parsons Brinckerhoff

David Lowdermilk
Vice President, Senior Area Manager
P: 215-209-1262
F: 215-561-9525
E: lowdermilkds@pbworld.com

Pam Conti
Civil Manager
P: 215 209-1249
F:215 561-9525
E:conti@pbworld.com

Charles (Chuck) Boschen
Senior Manager
P: 215 209-1210
F: 215 561-9525
E: boschen@pbworld.com

1600 JFK Boulevard
Suite 510
Philadelphia, PA 19103

www.pbworld.com/

WSP and Parsons Brinckerhoff have combined and are now one of the world’s leading engineering professional services consulting firms. Together we provide services to transform the built environment and restore the natural environment, and our expertise ranges from environmental remediation to urban planning, from engineering iconic buildings to designing sustainable transport networks, and from developing the energy sources of the future to enabling new ways of extracting essential resources.

Educational, Arts & Charitable Members

Drexel University
Tess Smith
International Co-op Manager, Steinbright Career Development Center
P: 215-895-4923
E: tas75@drexel.edu
3201 Arch Street
Philadelphia, PA 19104
www.drexel.edu

Drexel University, based in Philadelphia, PA, has been a pioneer in cooperative education (experiential learning) since 1919 – operating one of the largest cooperative education programs in the world, with over 6,000 students each year working both nationally and internationally. Over 1,500 businesses, industrial, governmental, and other institutions “cooperate” with Drexel in offering students the opportunity to acquire practical experience in employment related to college studies. Cooperative education at Drexel is a degree requirement for most majors, and students bring to the workplace top-notch skill sets, a desire to learn, and a global perspective.

Drexel University is ranked #95 in the 2015 U.S. News and World Report’s category, ‘Best National Universities”, and its cooperative education program is ranked in the nation’s Top 20. As part of the University’s Strategic Plan, there is an emphasis on students completing a global experience. Since 2012, over 600 students have completed an international co-op in over 85 countries.

To learn more about participating as an international co-op employer, please email Drexel’s International Co-op Team: internationalcoop@drexel.edu

To learn more about participating as a domestic co-op employer, please email Drexel’s Employer Relations Team: hireadragon@drexel.edu

 

Pennsylvania Academy of the Fine Arts
Melissa D. Kaiser
Executive Vice President of Development
E: mkaiser@pafa.org
128 N. Broad Street
Philadelphia, PA 19102
P: 215-972-2002
www.pafa.org

Through the rare combination of our spectacular galleries, our internationally known school of fine arts, and our public programs, PAFA strives to provide students and visitors alike with a unique and thrilling experience.

Individual Member

Christopher Scott D’Angelo, Esq.
Montgomery, McCracken, Walker & Rhoads, LLP
123 S. Broad Street
Philadelphia, PA 19109
P: 215-772-7397
F: 215-731-3767
E: cdangelo@mmwr.com


Boyds Philadelphia – World Renowned Local Clothier Featuring UK Fashion and Flair

Boyds, an iconic Philadelphia Clothier, and the newest British American Business Council of Greater Philadelphia Club Level member, offers the best designer fashion, shoes and accessories for men and women, with impeccable service. The founder of Boyds Philadelphia, Alec Gushner, emigrated from Russia in 1936. He opened his first store, selling “big & tall” men’s suits and sport coats more than 70 years ago in the heart of Philadelphia’s flourishing clothing retail sector on 5th and Market Streets. At the time, the majority of Philadelphia’s social elite would be spotted almost nightly at the Boyds Theater across town. Ever savvy Gushner strategically positioned his business to be associated with the upscale clientele of the famed venue, naming it “Boyds Philadelphia.” In the 1990s, the store moved uptown to the Rittenhouse Square neighborhood, one of the most exclusive parts of Center City, Philadelphia. Seasoned international business executives and new to the professional scene hipsters alike can find something original for the season, update a wardrobe, or obtain the perfect outfit for that special occasion, all under one beautiful roof.

The next generation grew the business from men’s “big & tall” suits and sport coats to include all tailored clothing. Over the years as business casual began to be introduced into the work place Boyds offered men’s and women’s sportswear. Currently owned and operated by third and fourth generation family members, Boyds has grown and evolved, but remains true to founding ideals. “There are no demographic breakdowns and no shareholders to answer to. Our customers are not points on a graph. We have one store, the same one that has been owned and operated by the same family. And when you know customers by their names and individual tastes, demographics just seem silly.”

Alex Gushner, the fourth generation family member in the business recently moved back to Philadelphia to assume his role at Boyds. Alex grew up in a suburb of Philadelphia. He attended The Haverford School, and the University of California, Santa Barbara (UCSB). During junior year Alex studied abroad in London, and interned at the Royal Bank of Scotland for its Loan Syndicate Group. It was during his time in London and tenure with the Bank when Alex truly connected with Britain. After graduating with a Bachelor’s Degree in Economics Alex moved to New York City and worked in Wholesale Sales at Ermenegildo Zegna. This past summer, Alex joined his family’s business in Philadelphia, where he works for his father and his two uncles, all of whom are Boyds partners. Alex is an Assistant Buyer of men’s tailored clothing and he brings to Boyds a particular focus on made-to-measure (custom) clothing. Alex believes, “partnering with the British American Business Council is simple evolution for a long-standing icon like Boyds — which carries UK brands, including: Belstaff, Paul Smith, Sanders and Chuches.”

Boyds is regarded as one of the world’s greatest clothing stores. The family continues to place emphasis on international networking and cultivating cross-cultural opportunites for style savvy shoppers and executives. In the age of mass merchandising, when so many retail stores look the same, Boyds prides itself on providing customers with exclusive merchandise. They offer one of the country’s largest selections of fine men’s and women’s designer fashions. After all, such quality is what their customers have come to expect – from the $2.25 sport shirts of the 1940s, to the leisure suits of the 1970s, to the luxurious fabrications and designers of today. Part of Boyds’ commitment also includes a policy of extraordinary customer service. Free custom alterations, fashion coordinators, and free valet parking are part of the Store’s ripe tradition. Boyds treats customers as individuals. That’s not typical, but neither is Boyds.

With more than 40 on-site European tailors – Boyds boasts the largest custom tailor shop in the country. The Store will customize the fit of anything from denim and sport shirts to suits and dresses. Boyds offers designer collections; men’s and women’s apparel; contemporary fashions; handbags; and shoes, from top fashion houses including: Isabel Mirant, Alexander McQueen, Giambatista Valli, Mugler, Brioni, Canali, Brunello Cucinelli, Zengna, and more. Need fancy footwear? You’ll find top shoe designers like Gianvitto Rossi, Alexander Wang, Aquazurra, Monolo Blahnik, Ferragamo, Tods, Gucci, and more.

Boyds occupies five floors of the old Oliver Bair funeral parlor, a magnificent building located at 18th and Chestnut Streets. The recently opened Boyds Custom Shirt Shop is better than ever. Visit Boyds’ new Custom Shirt Shop and experience the perfect shirt. From dress shirts to sport shirts to formal shirts, experience feeling the fabrics of your choice and selecting the colors and patterns you desire. Then one of our master tailors will take your precise measurements. Collars to cuffs, it’s your call! Designers include: Hamilton, Individualized Shirts, Ermenegildo Zegna, Eton, and Isaia. Visit Boyds. You will be impressed, not only by the beauty of the store and the merchandise they carry but by the impeccable service and welcoming environment.

The Store hosts fashion and trunk shows and exclusive shopping events throughout the year. Boyds is an avid supporter of local charities. Join the British American Business Council of Greater Philadelphia on Wednesday, November 4, 2015 for the Fashion Forward Executive Apparel Fundraiser & Networking Event. Spend an evening enhancing valuable business connections and shopping for global designer apparel, shoes and bags. All attendees will receive a special discount and a percentage of revenue will be donated to The Ronald McDonald House. The Philadelphia Ronald McDonald House supports families of seriously ill children by creating a community of comfort and hope. Proceeds from this event will go towards families who are traveling from outside of the United States for treatment.

Click here to learn more about Boyds and for a complete listing of services.


President’s Letter – Fall 2015

Dear BABC Members and Friends,

It was a long, hot summer, and the BABC knows our members have a thirst for more news and events! I hope you enjoyed receiving the 2015-16 BABC Annual Membership Directory. The Directory and our periodic newsletters are intended to provide BABC members with valuable information and business building opportunities.

This is a milestone program season for the BABC, as we will be celebrating our 25th anniversary. Kicking-off our events is a seminar about global mobility, focusing on the legal, tax and insurance implications of moving employees abroad; a pharmaceutical panel discussion; a fundraising event for The Ronald McDonald House; and our signature annual holiday luncheon, recognizing Philadelphia as a world class City and the Honorable Michael A. Nutter as he concludes his final term in office.

I encourage you to read this newsletter to learn more about these exciting BABC initiatives and recent past activities as well. While our face-to-face programs are important, we also hope you will frequent our website, where you can easily register for BABC events. I urge you to follow us on social media: Facebook, Flickr, LinkedIn, and Twitter, to remain in contact between in-person happenings.

I look forward to seeing you soon. Please join us to network and learn about current issues that may influence your business on either side of the Atlantic. Please also bring a colleague, client or friend who may be interested in the subject matter. Thank you for your support in helping us continue to deliver timely, relevant and valuable programs for a quarter century.

Sincerely,

Howard Silverstone

President, British American Business Council of Greater Philadelphia

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The BABCGP recognizes our Club Level Members:

  • American Airlines
  • Bartlett
  • Cigna
  • Deloitte
  • Drinker Biddle & Reath LLP
  • Duane Morris
  • Ernst & Young
  • HSBC
  • KPMG
  • McConnell Johnson Real Estate
  • Morgan Lewis
  • Law Firm of Pepper Hamilton
  • PriceWaterhouseCoopers
  • TD Bank
  • United Airlines
  • Virgin Atlantic