BEECHER CARLSON'S FINANCIAL SERVICES INDUSTRY
BEECHER CARLSON’S FINANCIAL SERVICES INDUSTRY WE ARE AN ADVOCATE FOR YOUR FINANCIAL SERVICES COMPANY
Directors and Officers Liability for Hedge Funds While the hedge fund industry is arguably the fastest growing segment of the overall financial services industry, it is also receiving the most attention from regulators and investors. Since the imposition of mandatory Securities and Exchange Commission (SEC) disclosure filings, hedge funds as well as their administrators and prime brokers are under ever increasing scrutiny. Regulators, concerned with the broad impact of the hedge fund industry on financial markets, are equipping themselves with additional financial and professional means to increasingly regulate and investigate the industry. The SEC’s budget request for 2013 will support a total 1,545 positions for the agency’s Enforcement Division alone, which represents an increase of 191 positions. The Enforcement Division is now the largest within the SEC and is implementing a host of risk-based initiatives designed to increase their ability to identify threats including “investment advisors serving multiple roles simultaneously managing structured products, investment funds and the valuation of difficult-to-value assets in times of market stress.” Whether you currently purchase Directors and Officers Liability and Professional Liability insurance or are now considering it, having the right coverage is essential. Not all policies respond to regulatory investigations, nor do they provide for the unconditional advancement of legal expenses. While there are a number of insurance carriers specializing in risks unique to hedge funds, having the right broker to negotiate and bring together the best the market has to offer is critical in obtaining the most competitive terms and conditions. Beecher Carlson’s Financial Services Practice is not only knowledgeable in obtaining the right coverage terms for hedge funds; we are equipped with advanced analytics to help you choose the right program structure. Our proven algorithms analyze thousands of data points against a field of litigation data to determine the likelihood and severity of insuring both regulatory and civil litigation against fund advisers. The level of risk you retain, the amount of insurance you buy and how it is priced should not be determined by what others have purchased. Rather, how your fund’s style and operational risk compares to funds that have incurred litigation provides the insight you need to understand and quantify your risk profile. In the current regulatory environment, you need more than an insurance broker. You need an advocate equipped with the right tools to make informed decisions.
Directors and Officers Liability for Hedge Funds While the hedge fund industry is arguably the fastest growing segment of the overall financial services industry, it is also receiving the most attention from regulators and investors. Since the imposition of mandatory Securities and Exchange Commission (SEC) disclosure filings, hedge funds as well as their administrators and prime brokers are under ever increasing scrutiny. Regulators, concerned with the broad impact of the hedge fund industry on financial markets, are equipping themselves with additional financial and professional means to increasingly regulate and investigate the industry. The SEC’s budget request for 2013 will support a total 1,545 positions for the agency’s Enforcement Division alone, which represents an increase of 191 positions. The Enforcement Division is now the largest within the SEC and is implementing a host of risk-based initiatives designed to increase their ability to identify threats including “investment advisors serving multiple roles simultaneously managing structured products, investment funds and the valuation of difficult-to-value assets in times of market stress.” Whether you currently purchase Directors and Officers Liability and Professional Liability insurance or are now considering it, having the right coverage is essential. Not all policies respond to regulatory investigations, nor do they provide for the unconditional advancement of legal expenses. While there are a number of insurance carriers specializing in risks unique to hedge funds, having the right broker to negotiate and bring together the best the market has to offer is critical in obtaining the most competitive terms and conditions. Beecher Carlson’s Financial Services Practice is not only knowledgeable in obtaining the right coverage terms for hedge funds; we are equipped with advanced analytics to help you choose the right program structure. Our proven algorithms analyze thousands of data points against a field of litigation data to determine the likelihood and severity of insuring both regulatory and civil litigation against fund advisers. The level of risk you retain, the amount of insurance you buy and how it is priced should not be determined by what others have purchased. Rather, how your fund’s style and operational risk compares to funds that have incurred litigation provides the insight you need to understand and quantify your risk profile. In the current regulatory environment, you need more than an insurance broker. You need an advocate equipped with the right tools to make informed decisions.
