Why Every Fund Manager Should Adopt an Employee Handbook (Part One of Three)

In light of #MeToo and other movements to improve workplace dynamics, there has never been a more important time for a fund manager to clearly articulate its expectations about what is and is not acceptable employee behavior. Even for advisers that truly embody a “tone-at-the-top” work environment, the risk remains that a single rogue employee’s bad behavior could cause severe damage to the adviser’s reputation and expose the firm to potential liability. Employee handbooks play a key role in communicating the employer’s expectations to its employees and minimizing employer liability. For those reasons alone, most, if not all, employers should adopt an employee handbook. Unfortunately, drafting and implementing those policies can be challenging for fund managers, many of which are leanly staffed and often lack in-house expertise on employment-related matters. This three-part series is designed to assist fund managers that have not yet adopted employee handbooks, as well as provide a benchmark for established managers that have already adopted them. This first article outlines the key benefits to fund managers of adopting employee handbooks, the laws that frequently inform the policies included in handbooks and the administration of employee handbooks. The second article will review the most important policies that advisers should consider including in their handbooks. The third article will explain how advisers can avoid common mistakes when drafting their employee handbook policies. See “A Checklist for Advisers to Comply With New York’s Anti‑Sexual Harassment Training Requirements” (Nov. 12, 2019).

To read the full article

Continue reading your article with a PELR subscription.