FPA seeks transparency on FICS
Jo-Anne Bloch
Financial planners will need to review their professional indemnity insurance arrangements as a result of the decision by the Financial Industry Complaints Services (FICS) to impose a 50 per cent increase in its monetary limits to $150,000, according to the Financial Planning Association.
FPA chief executive Jo-Anne Bloch expressed disappointment if not surprise at the FICS decision, which she said she did not believe was warranted.
“We are still unsure as to how FICS arrived at an appropriate number, and we are still uncertain as to how FICS arrives at its determinations,” Bloch said.
“Until we understand these sorts of critical issues our members will be opposed to any increase in monetary limits.”
However, the FPA chief executive said that her organisation did, at least, acknowledge that the changes would be the subject of a 12-month transition period, something that would enable planners to establish more appropriate professional indemnity arrangements.
Bloch said the FPA also welcomed a commitment received from FICS to work with the industry to improve the transparency of FICS’ processes.
FICS chief executive Alison Maynard had earlier announced what she described as a “much-awaited decision” to lift the monetary limit for investment complaints from $100,000 to $150,000 and the limit for life insurance complaints from $250,000 to $280,000.
She said that FICS had undertaken an exhaustive consultation process and that its board had made its decisions based on a consideration of all stakeholder views.
AUTHOR
Mike Taylor
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
