Emerging Hedge Fund Manager D&O Insurance Feasibility
Our team regularly speaks with emerging managers about purchasing D&O Insurance at the early stages of fund formation and the cost feasibility of such an investment.
Check here for the latest Iron Cove Case Studies & Financial Services Related Blog Posts
Our team regularly speaks with emerging managers about purchasing D&O Insurance at the early stages of fund formation and the cost feasibility of such an investment.
Tags: Insurance, insurance, investor risk, advisory, brokerage, directors and officers liability, Directors & Officers Liability, emerging hedge fund manager, feasibility, hedge funds, Iron Cove Partners, Lou D'Agostino, protection, regulatory risk
Launching a hedge fund is no easy task. From drafting the formational documents to regulatory filings to selection of key and critical vendors, there is no shortage of things to do prior to launch. Add to that list evaluating the respective insurance needs of a start-up fund. Start-up firms must entertain insurance products which may be either required (either by state law, regulation or by contract) or lines of insurance coverage which are elective and may be meant for more established firms. The process of not only reviewing what each policy may or may not cover but also taking into consideration the cost effectiveness and feasibility in the early stages of the business can be daunting.
In order to make this process a bit smoother and add some value in the early phases of a launch, we have created an Insurance Needs for Hedge Funds Guide which can assist you in your efforts of addressing insurance needs in the start-up phase.
About the Author
Louis D’Agostino is a Partner and Senior Vice President of Iron Cove Partners, LLC. Mr. D’Agostino is responsible for the oversight and management of IronCove’s Financial Institutions Practice which is dedicated to addressing the unique and complex risk management needs of companies engaged in the arena of financial services. i.e. Private Equity Funds, Hedge Funds, Investment Advisors, Securities/Dealers, Mutual Funds and the like. Mr. D’Agostino & his team currently serve as insurance advisor to some of the world’s largest Asset Managers and Financial Institutions.
Tags: Hedge Funds, Insurance, insurance, benefits, directors and officers liability, D&O, emerging manager, financial insitt, financial institutions, financial services, hedge fund, Iron Cove Partners, Lou D'Agostino, office insurance
Tags: hedge fund insurance, Hedge Funds, Insurance, insurance, Iron Cove Posts, broker, Coverage Overview, Directors & Officers Liability, D&O, Dodd-Frank, Risk, SEC Investigations
Tags: Hedge Funds, Insurance, insurance, Iron Cove Posts, claim, defense costs, Directors & Officers Liability, Disgorgement, Fines, hedge fund, Iron Cove, Penalties, SEC, SEC Investigations, Wrongful Act
Tags: Insurance, insurance, ACE, Acquisition, Iron Cove Posts, Chubb, Iron Cove, Lou D'Agostino, M&A, Property & Casualty
In July of 2013, the European Union's issued a directive aimed at Alternative Investment Fund Managers also known as the Alternative Investment Fund Managers Directive ("AIFMD"). The AIFMD requires AIFMs who market within the EU to hold either sufficient capital or have appropriate insurance in place to meet any financial loss arising from professional negligence claims related to their EU business or EU domiciled clients. This requirement can be satisfied with the AIF's own funds or they could procure insurance which is separate and not part of their existing insurance program (ring-fenced). Funds are required to carry .9% of total AUM in separate limits of professional liability (.7% for any one claim).
Tags: Hedge Funds, Insurance, insurance, AIFMD, Iron Cove Posts, Coverage Overview, Directors & Officers Liability, Errors and Omissions, Errors and Omissions Insurance, EU, hedge fund, Regulation, Separate Limits of Liabilty
295 Madison Avenue, 38th Fl, New York, NY 10017
Ph: 646.451.4031
Fax: 516.284.8656
Email: Info@ironcoveins.com
Copyright © 2018 Iron Cove. All Rights Reserved.