SINGAPORE, Oct. 17, 2011 /PRNewswire-Asia/ -- As a volatile global economy continues to create uncertainty for investors, fund managers are becoming increasingly concerned about potential claims by their clients of mismanagement and negligence, repeating a trend that emerged in the wake of the global financial crisis.
To help the large number of Notified Fund Management Companies ("Notified FMCs") in Singapore manage their risk exposures Marsh, a wholly-owned subsidiary of Marsh & McLennan Companies, today launched the Investment Management Insurance Scheme. The offering combines directors' and officers' liability insurance, professional indemnity insurance and crime insurance into a single customised package.
"Singapore has been tipped to overtake Switzerland as the world's top wealth management centre within the next two years, as the city-state benefits from growth in neighbouring emerging markets, a supportive regulator and a stable political climate," said Gary Chua, Marsh's Financial and Professional Risks Practice Leader for ASEAN.
"Risk management is a critical factor for investors when deciding who to entrust with their capital. In fact, institutional investors often require the fund managers they engage with to have Professional Indemnity insurance."
As part of the Capital Market Services (CMS) licensing requirements, representatives may be required to purchase professional indemnity insurance. However, this requirement does not apply to Notified FMCs, or those fund managers with up to 30 qualified investors or less than S$250 million in Assets Under Management.
"All fund managers, regardless of license status, size or type, are equally exposed to the risk of investor lawsuits or regulatory action. The Investment Management Insurance Scheme will help this important segment of the Singapore financial services sector to manage its risk more effectively," said Mr Chua.
About the Investment Management Insurance Scheme
The Investment Management Insurance Scheme is underwritten by ACE Insurance (Singapore) Pte Ltd and is customised for Notified Fund Management Companies in Singapore.
The Investment Management Insurance Scheme is designed for fund managers who have:
-- Assets under management of less than S$250 million, or
-- Up to 30 qualified investors, or
-- Manage less than 15 funds
The Investment Management Insurance Scheme offers the following insurance coverage highlights:
-- Directors' & Officers' Liability Insurance (D&O): protecting
individuals for specific management and personal liabilities
-- Professional Indemnity Insurance (PI): covering investment
services offered by investment managers and advisors
-- Crime Insurance: protecting investment managers and funds from
theft by employees
The Investment Management Insurance Scheme is meant for the following types of fund managers:
-- Listed Equity
-- Hedge Fund
-- REITs
-- Private Equity
-- Venture Capital
-- Fund of Fund
-- Fund of Hedge Fund
-- Hybrid of any of the above
For More Information
For more information, please visit www.marsh.com.sg/finpro_scheme.html where fund managers are able to obtain a no-obligation quote within 48 hours by completing an online form.
Free Seminar
Marsh is hosting a free breakfast seminar on the issue of professional liability for fund managers during market volatility on 28 October 2011. For more information, please contact Neha Mehta ( [email protected] ).
About Marsh
Marsh( http://www.marsh.com ), the world's leading insurance broker and risk advisor, teams with its clients to define, design, and deliver innovative industry-specific solutions that help them protect their future and thrive. It has over 24,000 colleagues who collaborate to provide advice and transactional capabilities to clients in over 100 countries. Marsh is a member of Marsh & McLennan Companies( http://www.mmc.com ), a global professional services firm with 52,000 employees worldwide and annual revenue exceeding US$10 billion, which is also the parent company of Guy Carpenter( http://www.guycarp.com ), the risk and reinsurance specialist; Mercer( http://www.mercer.com ), the provider of HR and related financial advice and services; and Oliver Wyman( http://www.oliverwyman.com/ow/index.html ), the management consultancy. Its stock (ticker symbol: MMC) is listed on the New York, Chicago and London stock exchanges. Follow Marsh on Twitter @Marsh_Inc( http://twitter.com/@Marsh_Inc ).
SOURCE: Marsh