The Hedge Fund Law Report has quoted Akin Gump labor and employment partner Richard Rabin in an article series on the topic of employee handbooks for fund managers.

In part one, “Why Every Fund Manager Should Adopt an Employee Handbook,” the publication reports that there has never been a more important time for a fund manager to articulate clearly to its employees the expectations regarding what is and is not acceptable employee behavior.

Rabin said the spotlight being shined on employee behavior is brighter than it has ever been because of the #MeToo era. Speaking of the advantages to adopting employee handbooks, he noted that beyond an anti-harassment policy, they are “one of the primary methods that advisors can use to communicate important information to their employees.”

In terms of when to adopt such a handbook, there are certain policies, Rabin said, “that an investment advisor will want to have in place on day one, including anti-discrimination and anti-harassment policies, along with the corresponding reporting process for an employee to follow in the event that the employee feels that he or she has been discriminated against or harassed.”

It is also important, Rabin advised, for an advisor to determine who is in the best position to administer the handbook’s policies. At larger advisory firms, there is usually a human resources department, but for small and mid-sized advisors, he noted, it is not uncommon to see advioers delegating HR-related functions to the chief financial officer, chief operating officer, chief compliance officer or general counsel.

Some advisors, Rabin added, have elected to allocate HR-related responsibilities across two or more of those individuals, but this will likely change over time, he said, “due to the #MeToo movement and the heightened risks that advisors and their principals are beginning to appreciate.”

The second article, “Ten Key Policies Fund Managers Should Include in Their Employee Handbooks,” examines several policies advisors should consider including in their handbooks, including, said Rabin, one stating that the advisor will not tolerate any form of retaliation against any individual who reports harassment or discrimination, or who participates in an internal investigation into such issues. He said there should also be a statement noting that the advisor “treats all employees the same regardless of gender, race, religion or other protected categories, and makes employment decisions without regard to those factors.”

As part of these policies, Rabin suggested including an internal complaint procedure that directs employees to report to the advisor any form of discrimination, harassment or retaliation. He said this should typically include “a few individuals to whom such information may be reported and ensure that those designated to receive complaints are well-trained on those issues and understand their roles in the process.”