Resources
Risk Management Studies
ICI Mutual’s extensive library of Risk Management Studies reflects a long-standing commitment to providing insureds with in-depth research and analysis of the mutual fund industry’s unique liability exposures and related insurance issues.
focuses on the fundamentals of financial institution bonds, with an emphasis on the subset of financial institution bonds known as investment company bonds. It reviews the scope of coverage typically found in investment company bonds, including the insuring agreements and riders common to such bonds in the commercial market and explores the various ways such bonds can be structured to meet the needs of investment companies, their advisers, and affiliated service providers.
assists ICI Mutual’s insured fund groups in preparing and filing insurance claims under the Company’s D&O/E&O Policy, IDL Policy, and Bond, and in understanding what to expect during the claims handling and claims adjustment process.
provides general information on the frequency, severity, and characteristics of larger operational errors in the fund industry, outlines the various considerations that may come into play in assessing and resolving the issue of advisers’ legal and financial responsibility for such errors, and describes the role of costs of correction insurance in facilitating timely and efficient remediations by advisers of larger operational errors for which they bear legal responsibility.
examines the general nature, number, and outcomes of the hundreds of securities-related lawsuits brought by the plaintiffs’ bar against funds, fund advisers, and/or fund directors and officers over the course of this century. It serves as both a high-level introduction to “entrepreneurial litigation” risk in the modern fund industry and as a basic framework to assist advisory personnel and fund independent directors to better understand how this risk may manifest itself in the years ahead.
explores the distinctive and important role played by “industry mutual” insurers such as ICI Mutual, and describes the value and benefits that ICI Mutual provides to its member-insured fund groups and to the fund industry as a whole.
explores how and why, notwithstanding the Supreme Court’s 2010 decision in Jones v. Harris Associates L.P., section 36(b) of the Investment Company Act of 1940 has reemerged in recent years as a significant litigation threat for the fund industry. The publication is structured as a series of frequently asked questions (FAQs), which explore the function and meaning of section 36(b), the long-running saga of Jones v. Harris, and post-Jones developments in section 36(b) litigation.
explores “shareholder authentication” mechanisms and processes implemented by fund groups. The publication describes general principles of authentication and limitations of authentication, and also reviews practical considerations for fund groups when addressing authentication issues, focusing on technological solutions, operational initiatives, and educational efforts.
focuses on recent trends in two types of fee litigation: lawsuits alleging violations of section 36(b) of the Investment Company Act of 1940, and lawsuits alleging violations of relevant provisions of the Employee Retirement Income Security Act of 1974 (ERISA). Among the topics discussed in this expert roundtable report are the relevant legal frameworks, the fund industry’s recent experience in such litigation, and predictions for the future.
provides a general introduction to IDL insurance, as well as commentary on related topics. The Guide includes an overview of fundamental liability protections commonly provided to fund independent directors, details how IDL policies are structured, describes the two basic types of IDL policies and how they differ, and highlights some of the key questions that fund boards may wish to consider in evaluating IDL insurance options.
focuses on recent developments in cyber technologies. The publication provides a general introduction to: (1) mobile computing, cloud computing, and social media, (2) the financial, legal, and reputational risks associated with their use, and (3) approaches that may assist fund groups in managing these risks.
focuses on operational risks associated with private account management. The Guide discusses common operational errors involving private accounts, explores some of the underlying causes of such errors, and reviews various risk management techniques employed by advisers to reduce and address operational risks of private accounts.
provides an overview of the retirement plan area, retirement plan services, and ERISA. The guide discusses public and private enforcement of ERISA, with a focus on large-scale civil litigation initiated by private parties, and analyzes key areas of ERISA-based litigation risk faced by fund advisers and their affiliates.
is designed to provide a general introduction to securities class actions that challenge mutual fund disclosure, to review the industry’s actual experience in such litigation, and to outline a number of considerations that fund groups may wish to take into account when designing and evaluating practices and procedures to reduce liability risk in this area.
provides an introduction to mutual fund D&O/E&O insurance coverage as well as commentary on specific insurance issues that may be of interest to fund boards, senior management, risk managers, and others involved in the insurance selection process.
reviews the basic fiduciary principles underlying an adviser’s allocation responsibilities and the associated legal risks advisers may face. The publication includes case studies illustrating how individual advisers have chosen to address particular trade allocation issues.
discusses the increased outsourcing of specialized functions by advisers and affiliated service providers to unaffiliated third-party vendors. The report also discusses the potential liabilities that such advisers and providers may face for a third-party vendor’s errors and the potential availability of insurance for losses resulting from such errors.
explores the potential disruption a pandemic could cause to fund groups and outlines steps fund groups may wish to consider in managing pandemic risk.
is designed to assist fund groups with assessing identity theft risks and with strategies to manage and reduce those risks.
(Co-Authored with ICI and IDC) discusses the important role that fund directors play in the fair valuation process.
describes the key types of private civil litigation in which fund independent directors are most likely to be involved and discusses techniques for managing their litigation risk.
(Co-Authored with ICI and IDC) provides an overview of issues to consider in developing and administering valuation policies and procedures.
is designed to promote a better understanding of the factors that have contributed to the overall rise in defense costs, and to help fund groups implement strategies and techniques that encourage cost-effective defenses.
is designed to facilitate communications with computer security experts, and to assist fund groups with identifying specific types of computer security risks and with computer security risk management techniques.
analyzes key portfolio management functions most commonly involved in claims, describes some of the most significant types of claims within each of these functions, and highlights measures that can be undertaken to reduce such claims.
is designed to assist fund groups in reducing the risk of losses from shareholder lawsuits, regulatory actions, and other legal liabilities stemming from bond fund-related losses.
describes the risks associated with processing corporate action requests (such as tender and exchange offers from issuers of portfolio securities), and offers techniques to manage these risks.