Thursday, July 23, 2009
Greetings Member-Partners and friends,
To further safeguard the capital of its Member-Partners and to protect them against acts of internal malfeasance, League Assets is proud to announce two new insurance policies:
- An Executive Liability policy, which provides up to $10,000,000 of protection against any single loss;
- An Employee Fidelity policy, which provides up to $5,000,000 of protection against any single loss.
The first policy assures that all of League's Member-Partners are protected against wrongful acts unintentionally committed by, or at the direction of the Directors. The second policy protects all investors from acts of fraud by League staff members.
Of course League's principals owe a duty of good faith to any of the entities of which they are directors or officers and the positively inter-dependent structure of League's investments assures management's interests are aligned with the investors'. Moreover, willful or material misrepresentation in any of League's offering documents continue to carry penalties under applicable securities laws. So while Member-Partners have always been protected by League's investment structure and applicable laws, now they are additionally covered by these policies.
We all know that certain investment managers have recently been found or suspected to have carried out fraud on a massive scale, causing pain and suffering to families and charitable organizations that entrusted their investments to them. Such actions show what happens when greed takes control.
However, in no way does the purchase of these policies question the competence of our team members. In fact, it is a testament to their professionalism. This is because to qualify for the insurance, League submitted itself to a rigorous investigation by Aon Reed Stenhouse Inc., an insurance broker with offices worldwide. After examining our business and our policies, standards, practices, and then comparing us with other similar-sized organizations to establish a precedent, the underwriters concluded that League poses such a low risk, that we were "worthy" of being covered -- and at a preferred rate with the highest suggested coverage amounts.
Although I knew this to be true long before the process began, having the fact independently confirmed by term risk managers pleased me greatly.
I'd like to emphasize that we did not undertake to purchase this insurance because we were told we should. We did so voluntarily because it is the right thing to do. Furthermore, the two policies are being paid for by League -- not from the proceeds of any investment entities. We are pleased to do so in the name of positive-interdependence, the overriding principle that governs all our decisions and operations.
In our constant pursuit of excellence, we are happy to have added even more assurance for current and future Member-Partners' that their capital, and the wealth of their future generations, are in trustworthy hands. My partner Adam Gant and I, along with all League staff, are bound by Our Credo. It is our guiding philosophy. It is who and what we are, and it guides all our decision-making every day.
We are not among those who believe mediocrity is a safe resting place. We believe that as Member-Partners in League, you are deserving of more than the standard fare. We set high standards for ourselves, and daily we see to it that in every arena in which we operate we continually aim to exceed all others.
The acquisition of these two new insurance policies reinforces our intention of making League so good that you won't hesitate to invite your friends and colleagues to join you in member-partnership. The faster League grows, the greater our ability to create new services and wealth-building opportunities for all.
Should you have any questions about this or any other matter, please do not hesitate to call your Member Services Manager, or me. As your fellow Member-Partners, we take great pride in helping you achieve Intergenerational Wealth™ -- for you and your family.
Warmly and sincerely, |
