Obtaining PI is a problem and ASIC knows it

ASIC/australian-securities-and-investments-commission/financial-advisers/professional-indemnity-insurance/PI-insurance/

17 December 2019
| By Mike |
image
image
expand image

The Australian Securities and Investments Commission (ASIC) has acknowledged the trouble some financial advisers are experiencing in obtaining professional indemnity (PI) insurance.

The acknowledgement is contained in ASIC’s latest report overviewing licensing and professional registration applications and represents one of the regulator’s first formal acknowledgements that obtaining PI coverage has become an increasing problem for advisers.

However, ASIC’s only advice to advisers who are experiencing problems obtaining PI is that they should start the process early to give themselves time to overcome any issues which would impact on their licensing.

“We are aware that some applicants are experiencing difficulty in obtaining PI insurance that meets the requirements specified in our regulatory guidance,” the ASIC document said.

It said that the problems it had identified including policies involving a significant excess compared to the premium and the complexity in PI policy terms and unacceptable exclusions to coverage.

“Given the difficulty some applicants are experiencing in obtaining adequate PI insurance, ASIC encourages applicants to engage with their proposed insurer as early as practicable to minimise potential delays associated in finalising a licence application,” the regulator said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

4 months 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

4 months 2 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

6 months 2 weeks ago

Commonwealth Bank has formally dropped to zero advisers following LGT Crestone’s acquisition of its advice arm – some six years on from the Hayne royal commission. ...

1 week 3 days ago

ASIC has banned a former NSW adviser from providing advice for 10 years for investing at least $14.8 million into a cryptocurrency-based scam. ...

3 days 17 hours ago

ASIC has issued a warning to financial advisers to ensure they are complying with client consent requirements when entering into ongoing fee arrangements....

1 week 2 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
3