London, UK, 2 September 2015Bank of New York Mellon computer glitch – cyber or professional indemnity insurance?
A recent article in the Financial Times (26th August - Funds scramble to assess computer glitch) has documented the problems experienced by one of the largest custodian banks as the result of a computer glitch.
In short, it appears that the computer systems used by the bank to calculate the Net Asset Values (NAVs) of its fund clients has suffered problems following a failed software upgrade by one of its suppliers. This may have led to investors buying or selling funds at inaccurate prices and the funds in question being unable to disseminate accurate price information.
Here we detail where the claims may emanate and how insurance could react in a similar scenario.
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