Call for clarity on PI
Catharine Crack
Melbourne-based consultancy, FSI Consulting has accused the Australian Securities and Investments Commission of putting the cart before the horse on the key question of professional indemnity insurance for financial planners.
FSI spokeswoman Catharine Crack claims that before the industry can do anything about working towards Australian Financial Services licensee specific professional indemnity insurance policies, clarity was required over the issue of claims limits and amounts.
She said that only when that clarity was provided could the industry even contemplate working together with brokers to establish meaningful PI policies that would stand the test of a claim.
Crack said that the situation was being made harder for the industry because of recent calamities in the marketplace such as Bridgecorp, Westpoint and Fincorp and moves by FICS to increase its complaints limits.
AUTHOR
Mike Taylor
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
