Will Your Insurance Protect You in a Tougher Regulatory Environment?
Brian Horwell, Director – Professional Risks, Miller Insurance Services Limited
October 2006
Recent high profile cases point to the probability that tougher regulatory constraints will be imposed on hedge funds in the not too distant future. These cases include the fine imposed on GLG and Philip Jabre, by the Financial Services Authority, the Japanese regulator's action against Yoshiaki Murakami’s alleged insider trading and the requirement for hedge funds to register with the Securities and Exchange Commission (SEC), albeit on hold at present.
In this article we highlight where insurance such as professional indemnity (PI) and directors’ and officers’ liability (D&O), can provide protection against regulatory breaches, and what you should be looking for within your PI and D&O policy wording.
