Count PI strategy pays off
Barry Lambert
Big accountancy-based financial planning dealer group Count Financial has confirmed that some of the savings that generated the strong growth in dividends in its latest financial results were achieved by a decision not to pay for professional indemnity (PI) insurance with inadequate coverage.
Count revealed the benefits of its PI approach at the same time as announcing its annual results to the Australian Securities Exchange, but acknowledged that it was currently in the process of having its alternative compensation arrangements reviewed by the Australian Securities and Investments Commission.
At the same time, it revealed that its net compensation costs in 2008 had amounted to $0.03 million, compared with $0.13 million in each of the previous two years.
Count executive chairman Barry Lambert has been a vocal critic of the current PI arrangements for financial planning practices.
AUTHOR
Mike Taylor
Recommended for you
Financial Services Minister, Stephen Jones, has assured the cost and time to enter the financial advice profession will soon be halved, as shadow treasurer Angus Taylor pledges to reach 30,000 advisers.
The positive results of the latest financial adviser exam have helped the advice profession reach 15,600 yet again, according to Wealth Data analysis.
Financial advice firms have told Adviser Ratings they are planning to increase their compliance spend by almost a third, including on enhancements to their cyber security which ASIC has identified as an enforcement priority.
The digital advice platform is officially launching into the financial advice sector, offering up its services to practices as a means of engaging with the next generation of clients.
