Issues in Risk Management for Hedge Fund Management Companies: Insurance and Social Media

Increasingly, private fund managers are considering general partner liability insurance policies to help manage the risk of litigation and regulatory investigations brought against funds or fund managers. General partner liability (GPL) policies vary considerably in the risks they cover and how well they perform. The panel will discuss the potential benefits (and costs) of purchasing GPL insurance and will review many of the key coverage terms in an effective GPL insurance policy.

The panel will also consider social media policies. As sites such as Facebook, Twitter and LinkedIn have become an increasingly significant means of communication and interaction between individuals and firms, many fund managers have adopted or updated social media policies and procedures to address the use of social media. The panel will discuss Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) guidance in this area as well as issues that may arise in adopting social media policies.