Private equity investment through the EIS and SEIS schemes has become increasingly popular in recent years and a vital boost to the British economy. However, in the eyes of the law and the Financial Conduct Authority such investment remains a “high risk” activity.
In an increasingly litigious age dominated by a culture of blame and tight regulation, professional advisers, managers and executives are vulnerable to claims by aggrieved investors who have allegedly suffered financial losses through the negligent selection, management and governance of their EIS and SEIS investments.
EISA members are therefore in need of effective insurance cover to protect them against such claims. In some cases, this will also be a regulatory requirement. However, the private equity sector remains a mystery to many insurance professionals.
This is where MFL can help.