Iron Cove Blog

Check here for the latest Iron Cove Case Studies & Financial Services Related Blog Posts

Dodd-Frank Requires the need to hire a Chief Compliance Officer: Is the CCO Adequately Protected??

Jun 25, 2011 11:30:01 AM

The Dodd–Frank Wall Street Reform and Consumer Protection Act, is a federal statute signed into law on July 21, 2010.  The Act offers many sweeping changes to the financial regulatory environment and affects almost every aspect of the nation’s financial services industry.  Under the Act, investment managers/advisers to private equity funds and all private investment funds will have to register as investment advisers with the SEC no later than July 21, 2011. There is a provision that exempts managers of private equity funds with less than $150 million in assets under management from registering.  If you do not fall within the exemption, then failing to register would constitute a willful violation of the act.

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Tags: accredited investor, allocations, Iron Cove Posts, Chief Compliance Officer, Cyber & Privacy Liability, directors and officers, Directors & Officers Liability, Dodd-Frank, dodd-frank, Errors and Omissions, hedge fund, Insurance, insurance, Management Liability, Professional Liability, Property & Casualty, Reform, Regulation, regulation, SEC, SEC Investigations

Hedge Fund Management & Professional Liability Insurance; Are Costs Really Declining?

Jun 24, 2011 2:40:53 PM
May 10, 2011, Written by
Louis D'Agostino
Partner & SVP of Iron Cove Partners, LLC
Hedge Fund Insurance Specialist

It is an absolute certainty that more and more hedge funds of all shapes and sizes are buyers of liability insurance protection. This is mostly due to increased due diligence on the part of the investor base and their requirements to carry the applicable insurance protection. Institutional investors have always had a reputation for having really stringent risk management guidelines and mandates. In light of the various investment scandals and numerous investment frauds, even individual high-net worth and qualified investors request that each fund group carry certain insurance protection. This wasn't always the case.

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Tags: Iron Cove Posts, Insurance

How The Dodd-Frank Whistleblower Provision Could Affect Your Management Liability Insurance

Jun 24, 2011 2:21:31 PM
Article written by Gregory C. Sibilio, Esq.
Vice President
May 16, 2011, The Dodd-Frank Whistleblower Provision has been in the news recently for two separate reasons.  The first is that the first major federal court opinion on the provision was ordered on May 4, 2011.  The second is that on May 11, House Republicans introduced new legislation to the Dodd-Frank Act at a House Committee on Financial Services subcommittee hearing.  This legislation attempts to limit the Whistleblower Provision’s impact by requiring employees to report fraud to their superiors before going to the SEC.  The Court ruling and the legislation are similar in the sense that they both involve going through the internal chain of command before going to the SEC.  They will be discussed below.

The Whistleblower Provision (Section 922 of the Dodd Frank Act) specifies that a person who provides to the SEC, original information of securities fraud within the company that leads to an enforcement penalty of $1 million or more may be entitled to collect between 10 and 30 percent of the penalties of $1 million or more.  The Act prohibits employer retaliation against whistleblowers by employers and would provide for the whistleblower’s immediate reinstatement, as well as double back pay, attorneys’ fees, and other reasonable costs.

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Tags: Asset Management, Iron Cove Posts, Directors & Officers Liability, Dodd Frank, hedge fund, hedge fund insurance, insurance, Iron Cove Partners, regulation, SEC

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