FPA primed for group PI insurance
Jo-Anne Bloch
A “competitively priced and transparently administered” professional indemnity (PI) insurance policy will be in place by June if the Financial Planning Association (FPA) has its way.
The FPA has today called for tender submissions for the provision of a group PI insurance policy that will deliver regulatory coverage for FPA members and greater certainty for clients.
FPA chief Jo-Anne Bloch said access to effective PI insurance is not just a legislative requirement for financial services licensees, but an integral part of members’ capacity to deliver professional financial advice to clients.
“Over the past few years the number of insurers offering PI cover to financial planners has greatly reduced.
“Our members have also tabled concerns with regards to the variety of terms and conditions that are available, and the limitations that come with commercial arrangements,” Bloch said.
She said the introduction of an ASIC regulatory guide and increased monetary limits with the Financial Industry Complaints Service (FICS) has compounded the issue.
“[The PI policy] will also offer the administrative efficiency of a group policy whereby members will not be required to source and then negotiate individual deals,” Bloch said.
Tender submissions must cover the FPA membership requirements for PI insurance and cater for the terms of reference of the FICS, and will be overseen by a tender review panel chaired by Hewison and Associates chief John Hewison.
Recommended for you
The Federal Court has dismissed a conflicted remuneration case brought by ASIC against the director of life insurance distributor Freedom Group, where Bali holidays and Vespa purchases were among sales incentives.
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
