Legal advice is a tool that allows parties to obtain the opinion of a qualified third party on the subject, purpose and other matters related to the completion of a transaction. This is a document created by a lawyer competent on a specific issue or problem. The regulator may require such legal findings from the investment company in the near future. The legal opinion of an investment company shall contain information as to whether the compiler considers that the company applying for a licence is able to carry out the activities specified by it at the time of submission of the application, which are based on the documents submitted to the regulatory authority by the applicant company. It is important to know that if the customer`s investigated activity is considered illegal, the conclusion may not be positive. It should be noted that no self-respecting law firm will risk its name and issue an opinion on the legality of the activity if the activity under investigation is illegal. For this reason, creating a legal opinion can be quite an expensive process. High-quality legal advice on investment matters is characterised by strict language, clarity of circumstances, validity in accordance with applicable law and the existence of transparent and comprehensible conclusions. Validity of the Agreement: Article 47 of the Investment Companies Act provides that any contract entered into in breach of the Investment Companies Act or the performance of which involves such a breach shall not be enforceable by either party unless a court determines that enforcement would result in a fairer result than non-performance in the circumstances. Because of these potentially serious consequences, it is important to be aware of the limitations and limitations that exist under the Investment Companies Act and to ensure that the terms of credit documents comply with these restrictions and restrictions.
Lenders generally require borrowers to have specific assurances that the transaction does not violate the Investment Companies Act. And the borrower advisor`s legal opinions usually contain statements that deal with the borrower`s status as an investment company, as well as non-violation of the Investment Companies Act and related regulations. Lawyers who prepare legal advice for investment activities not only review business plans, financial models, governing documents, user agreements, personal data protection agreements, anti-money laundering policies and other documents, but may also communicate with shareholders or directors who apply for a business license. Before entering into a business transaction, the parties to such a transaction should carefully consider the nature and volume of the transaction, as well as the legal issues associated with it. Final opinions often sought in connection with credit transactions and the issuance of securities include those on borrower or issuer status under the Investment Companies Act of 1940 and the absence of violations of the federal Reserve Board`s margin rules (administered by the Securities and Exchange Commission) due to the obligations of the borrower or issuer and compliance with transaction documents. Violations of the Investment Companies Act or margin regulations may result in the invalidity or cancellation of a contract and expose the infringing parties (and other participants in the transaction) to fines and other regulatory penalties. This program deals with how these final opinions are typically formulated, what they mean, and the work needed to support them. 2. General presentation of the documents examined or other questions of fact or law taken into account by the author in the presentation of the legal opinion, as well as information on the various reservations admitted. These reserves may vary depending on the nature of the request. For example, it is possible to make a statement on the advisability of applying a foreign law in case the obligation should be fulfilled outside the country. This is especially true in cases where issues are raised in more than one country, which requires the participation of relevant foreign lawyers, lawyers or partners.
It should be borne in mind that legal advice should not be considered a substitute for legal assistance, and the client should understand that after receiving legal advice, it is not an “action guide” or agreement per se. 3. The legal advice of a lawyer, including investigating the facts, interpreting the facts about their legality or potential risks. The author of the legal opinion should clearly and in detail consider a sufficient number of facts that confirm each of the conclusions set out in the legal opinion. In many countries, regulators require the provision of legal advice to financial markets when applying for licenses from professional participants in the securities market such as mutual funds, forex brokers, custodians and others. We will also discuss the important role that the SEC`s no-action letters have played in establishing the usual practice regarding the opinion on the statute of the investment company, as well as the form and content of the certificates of fact on which the opinion is based. 1. Customer information, information about the person to whom the conclusion is addressed, information about the compiler, information about the task delivered to the compiler. In some cases, it is also assumed that the legal advice is used by persons other than those indicated. For example, a legal opinion addressed to the insurer on the legality of the proposed issue of shares or bonds, on which the issuer`s transfer agent or the issuer`s bank or payment system must also be based.