Jo-Anne Bloch
Financial planners will need to review their professional indemnity insurance arrangements as a result of the decision by the Financial Industry Complaints Services (FICS) to impose a 50 per cent increase in its monetary limits to $150,000, according to the Financial Planning Association.
FPA chief executive Jo-Anne Bloch expressed disappointment if not surprise at the FICS decision, which she said she did not believe was warranted.
“We are still unsure as to how FICS arrived at an appropriate number, and we are still uncertain as to how FICS arrives at its determinations,” Bloch said.
“Until we understand these sorts of critical issues our members will be opposed to any increase in monetary limits.”
However, the FPA chief executive said that her organisation did, at least, acknowledge that the changes would be the subject of a 12-month transition period, something that would enable planners to establish more appropriate professional indemnity arrangements.
Bloch said the FPA also welcomed a commitment received from FICS to work with the industry to improve the transparency of FICS’ processes.
FICS chief executive Alison Maynard had earlier announced what she described as a “much-awaited decision” to lift the monetary limit for investment complaints from $100,000 to $150,000 and the limit for life insurance complaints from $250,000 to $280,000.
She said that FICS had undertaken an exhaustive consultation process and that its board had made its decisions based on a consideration of all stakeholder views.
