‘Falcone’s Fitness’
The wrongdoing exposes “serious issues related to Mr. Falcone’s fitness to control the management, operations, and policyholder funds of a New York insurance company,” Lawsky said in the statement. The statement didn’t say what specific role, if any, Falcone had at Fidelity.
Fidelity’s New York unit agreed to put in place new policyholder protections under today’s agreement, including setting aside $18.5 million in a trust account to replenish its risk-based capital levels to protect consumers from unexpected losses, Lawsky said.
The guidelines are modeled on internal rules adopted by other insurance companies owned by private equity firms and investment companies at the financial regulator’s request, according to today’s statement.
U.S. money manager Guggenheim Partners LLC and Apollo Global Management LLC agreed this year to similar policyholder protections, according to the statement.