On August 7th, 2017, the Office of Compliance Inspections and Examinations ("OCIE") released its observations from its Cybersecurity 2 Initiative. The staff examined 75 firms consisting of broker-dealers, investment advisers, and investment companies ("funds") in order to assess industry practices and legal and compliance issues associated with cybersecurity preparedness.
On October 11th, 2016, the Securities and Exchange Commission announced that, in fiscal year 2016, it filed 868 enforcement actions exposing financial reporting-related misconduct by companies and their executives and misconduct by registrants and gatekeepers, as the agency continued to enhance its use of data to detect illegal conduct and expedite investigations.
Tags: Insurance, insurance, Iron Cove Posts, Directors & Officers Liability, D&O, dodd-frank, hedge fund, Hedge Fund Regulation, Iron Cove Partners, Lou D'Agostino, Regulation, regulation, Risk, Risk Management, SEC, SEC Investigations
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
What constitutes a claim under a Hedge Fund Directors and Officers Liability Insurance policy? While definitions vary from insurer to insurer, most insurance contracts define “claim” as any civil, administrative, arbitration, criminal or regulatory proceeding against any insured commenced by:
Tags: Hedge Funds, Insurance, insurance, Iron Cove Posts, claim, Coverage, Coverage Overview, defense costs, directors and officers liability, Directors & Officers Liability, Errors and Omissions, hedge fund, inquiry, Iron Cove Partners, Lou D'Agostino, Regulation, SEC Investigations, trigger
APRIL 30th, 2014
Tags: Insurance, insurance, Iron Cove Posts, Broker-dealer, Cost, Coverage, Coverage Overview, Dodd-Frank, Errors and Omissions, Fiduciary, Fiduciary Liability, Finra, Liability, Registered Representative, Regulation, SEC, SEC Investigations, Securities Dealers
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.
Tags: accredited investor, Insurance, insurance, 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, Management Liability, Professional Liability, Property & Casualty, Reform, Regulation, regulation, SEC, SEC Investigations