SEC Rules Evolve: Risk Mitigation for Investment Advisors Webinar Recap

On January 16th, industry professionals and PLUS Conference sponsors from Westfield Specialty gathered for a highly insightful webinar on navigating the evolving landscape of SEC examination priorities and professional liability risks. The session focused on the SEC’s fiscal year 2025 examination priorities, which highlight increasing scrutiny on emerging technologies, complex products, cybersecurity, and new SEC rules for Investment Advisors. As technology and regulatory frameworks continue to evolve, this webinar provided valuable guidance for professionals in the Financial Institutions insurance market on how to mitigate risks related to regulatory actions and client lawsuits. Below are the key takeaways from the webinar:

Emerging Regulatory Scrutiny

The SEC’s 2025 examination priorities emphasize the need for Investment Advisors to stay ahead of regulatory changes surrounding artificial intelligence (AI), digital engagement practices (DEPs), and cybersecurity. Understanding these shifts is vital for professionals to assess and address liability risks effectively.

Liability Exposure and Coverage Gaps

The webinar highlighted the potential professional liability exposures arising from an insured’s failure to comply with stronger SEC standards. Participants learned how current insurance products can provide crucial protection for defense costs and regulatory actions, helping to close potential gaps in coverage.

Adapting Underwriting Practices

With the SEC focusing more on areas like outsourcing and private fund advisers, the session discussed the evolving underwriting methodologies that professionals should adopt to help clients better manage their liability exposure. This includes a more nuanced understanding of the underwriting factors most relevant to the current regulatory climate.

Importance to Professional Liability Practitioners

This webinar is a vital resource for professional liability practitioners, particularly those in the Financial Institutions insurance market. As regulatory scrutiny intensifies around emerging technologies, cybersecurity, and new SEC rules, understanding the intersection of these changes with liability exposure is crucial for effective risk management. The insights provided help practitioners navigate these evolving challenges and better equip their clients to mitigate potential risks, ensuring that their insurance products remain relevant and comprehensive in this shifting landscape.

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Meet the Speakers

Kevin Koehler has enjoyed over 30 years of experience in the FI space and in Financial Lines. He joined Westfield Specialty as Head of Financial Institutions underwriting in April of 2024, after acting in financial lines leadership roles at Intact, Everest and AIG. Kevin was employee #1 of Everest Specialty Underwriters, in 2009, post his departure from AIG. Additionally, he has significant experience in the asset management sector and has participated in multiple Asset Management policy drafts and rewrites over the course of his career. He has participated on numerous industry panels and been published several times in the last twenty years. He holds a Bachelor of Arts degree from Syracuse University.

Chris Luca joined Westfield Specialty in April 2024, and is the Product Leader in the Financial Institutions Group. Prior to joining Westfield, Chris was a leader in the Financial Institutions Group for Intact Specialty, having helped start up their Financial Institutions group in 2015. Chris was also involved in the formation of Everest Specialty in 2009 while having roles of increased responsibility over that time. Chris started his carrier in 2001 at AIG. With a deep expertise in all market segments within Financial Institutions, Chris has spoken on numerous panels and has participated in several other industry related events. Chris has a degree from Loyola University in Maryland as well as CPCU, RPLU and ARe professional designations.

Michael Colford is Senior Vice President and Cyber Product Leader for Westfield Pro. Michael has 15+ years of insurance experience including over 13 years in Cyber liability, Miscellaneous Professional Liability, Technology Errors and Omissions, and Multimedia Liability products. Michael was previously VP, Cyber and E&O practice at Aspen Insurance and prior to that also held roles at Allied World and Travelers.

Kate Miniter serves as Vice President and Senior Client Manager at Lockton Professional and Executive Risk, where she specializes in providing tailored risk consulting and management and professional liability solutions for leading financial institutions. With a decade of industry experience, Kate brings deep expertise and a proven track record of success.

Before joining Lockton, Kate managed a team of underwriters in Chubb’s Financial Institutions Group in New York. Her commitment to excellence and client-focused approach makes her a trusted advisor in the field.

Jason Cronic represents directors and officers liability insurers and other professional liability insurers in coverage matters before federal and state courts across the country, as well as internationally. He regularly represents insurers’ interests in connection with resolution of complex securities and derivative claims through litigation at both the trial and appellate level. He has particular expertise with respect to coverage issues arising from policyholder bankruptcy and claims asserted on behalf of bankrupt estates, as well as rescission and other affirmative actions taken in defense of insurers’ rights. While Jason’s litigation experience is extensive, he understands that clients often prefer business-driven solutions that avoid protracted legal battles. To that end, he frequently assists clients in negotiated resolutions of coverage disputes through mediation and other structured work-outs of complex claims.