Planners need to act on PI
A national law firm has warned planners they need to start familiarising themselves with the requirements of the Australian Securities and Investments Commission’s new professional indemnity insurance requirements.
A partner with Dibbs Abbott Stillman, Michael Hodgson, said all existing and prospective licensees should be familiarising themselves with the new PI insurance requirements and ASIC’s proposed policy.
“Existing licensees with PI insurance policies that are falling due for renewal should be taking this opportunity to assess the proposed renewed policy against the new requirements, and discussing any gaps with their insurance broker and legal adviser,” Hodgson said.
He said existing licensees should also ensure their documentation was updated to include descriptions of their compensation arrangements by July 1 next year.
Hodgson pointed out that the new PI regulation would apply from July 1, 2008, to all licensees whose license commences on or after January 1, 2008.
The regulation prescribes compensation arrangements and requires people providing financial services to retail clients to hold adequate PI insurance cover.
AUTHOR
Mike Taylor
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