New York, August 12, 2015 – Zurich North America has revised its liability policy for investment advisers, mutual fund and hedge managers following a rise in regulatory risk prompted by new investigative approaches used by the SEC.
In 2014, the Securities and Exchanges Commission (SEC) filed a record 755 enforcement actions , obtained orders totaling $4.16 billion in disgorgement and penalties and saw its first infraction of the “pay-to-play” rule for investment advisers. The SEC also saw increased activity in its whistleblower program—about $35 million in awards were handed out—and leveraged initiatives like the Aberrational Performance Inquiry, which uses data analytics to look for unusual performance return postings from hedge fund advisers.
“Our customers are vulnerable to increased regulatory scrutiny by the SEC and its use of improved investigative tactics,” said Marc Tauber, vice president of National Accounts Financial Services for Zurich North America. “In response, we have enhanced our Zurich Asset Management Select policy to provide superior coverage for regulatory and other risks.”
Zurich Asset Management Select (ZAMS) is designed to be a broad policy for advisers and hedge fund managers that can help address the increased litigation exposure from investors and limited partners, as well as increased regulatory risk. ZAMS includes coverage for derivative demand investigation costs, a coverage that is typically available only through endorsement.
Hedge managers coverage highlights of ZAMS:
- Inquiry costs coverage;
- Non-party witness coverage;
- Alternative Investment Fund Managers Directive (AIFMD);
- Outside Directorship Liability (ODL); and
- Insured-person-specific coverages such as Freedom Protection Costs, Assets and Liberty Costs and Pre-Insolvency Hearing Costs.
Financial institutions can purchase ZAMS by contacting their broker. More information on Zurich offerings for financial institutions is available online.
About Zurich
Zurich Insurance Group (Zurich) is a leading multi-line insurer that serves its customers in global and local markets. With more than 55,000 employees, it provides a wide range of general insurance and life insurance products and services. Zurich’s customers include individuals, small businesses, and mid-sized and large companies, including multinational corporations, in more than 170 countries. The Group is headquartered in Zurich, Switzerland, where it was founded in 1872. The holding company, Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX. Further information about Zurich is available at www.zurich.com. In
North America, Zurich is a leading commercial property-casualty insurance provider serving the global corporate, large corporate, middle market, specialties and programs sectors through the individual member companies of Zurich in North America, including Zurich American Insurance Company. Life insurance and disability coverage issued in the United States in all states except New York is issued by Zurich American Life Insurance Company, an Illinois domestic life insurance company. In New York, life insurance and disability coverage is issued by Zurich American Life Insurance Company of New York, a New York domestic life insurance company. For more information about the products and services it offers and people Zurich employs around the world go to www.zurichna.com. 2012 marked Zurich’s 100-year anniversary of insuring America and the success of its customers, shareholders and employees.
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