Obtaining PI is a problem and ASIC knows it
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.
Recommended for you
Sharing his reasoning in joining the FSC board, WT Financial chief executive, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.