Regulatory Alerts2019-04-25
SEC Circular No 3/2019 on Professional Indemnity Insurance Compliance under Section 182(2) of the Securities Act No. 41
The Securities and Exchange Commission directs all licensed capital market operators to comply with Section 182(2) of the Securities Act No. 41 by securing professional indemnity insurance against liabilities arising from negligence or default. Licensees must confirm their compliance status and submit copies of the relevant insurance policies to the Commission on or before May 17, 2019. This directive operationalizes requirements previously highlighted during the 2017 Capital Markets Operators Workshop to ensure robust risk coverage for licensees and their employees.
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