‘Limitations’ to PI licensee cover
The Australian Securities and Investments Commission has moved to work with financial services licensees to oversee the smooth introduction of the Government’s new regime requiring licensees to carry professional indemnity insurance cover.
The regulator’s announcement has come at the same time as an acknowledgement that “some practical limitations” exist.
In an announcement released this week, ASIC said it would be working with insurers, industry and consumers to achieve the Government’s objective of reducing the risk that licensees cannot meet retail clients’ claims for compensation because they do not have sufficient financial resources.
ASIC’s executive director of regulation Malcolm Rogers acknowledged there were some practical limitations in using professional indemnity insurance to achieve the Government’s objectives.
“We will use the consultation process to work through these issues and ensure our final policy takes account of practical issues for licensees and insurers,” he said.
AUTHOR
Mike Taylor
Recommended for you
Wealth Data has revealed the top five licensees for financial adviser growth over the September quarter, with more than 150 advisers joining in Q3 overall.
Former Sydney financial adviser, David Valvo, has pled guilty in court to a charge of dishonest conduct.
Building a network of mentors and coaches with varied skill sets could help women achieve their career goals, according to an FBAA executive.
AMP has reported its Q3 results and provided a progress update on the divestment of its advice division to Entireti.
