Investment Management Insurance
CMX understands the expectations and pressures placed on investment managers and fund managers. Regulatory and compliance obligations are greater than ever and investors’ preference to bring actions against fund managers and their directors is becoming more frequent.
Complimentary policy reviews
No hidden fees
What are the risks faced by Investment Managers?
Investment management is a complex beast. In the current environment of:
Investment managers are likely to owe duties, as both company officers and as professionals, to shareholders, investors, employees, regulatory agencies and other third parties. A breach of duty may lead to claims from any or all of these parties.
What is Investment Managers Insurance (IMI)?
Who can benefit from Investment Management Insurance?
The Claimant sued for its loss of investment and associated losses.
Outcome: The Investment Managers insurance policy paid $350,000 in defence costs and $1.5 million in damages.
Case Study: Investor suing for loss of investment
The insured fund specialised in attracting foreign nationals to invest in Australian property related funds to enhance their visa prospects.
The Claimant invested $4.5M in the property fund on the basis that at the time the Fund allegedly knew the property was valued at $13M.
Following the investment, the Fund made a loan of $17M to a property developer. The Claimant was allegedly told if the property developer defaulted on the loan, the Claimant would have first rights to the subject property.
The property developer borrowed further money from a separate lender which included a mortgage over the property. The property developer defaulted on the loan and the property was repossessed by the finance company.