Australian Securities Investments Commission (ASIC) has changed the insurance landscape for all Australian Financial Services Licensees.
Under the new regulations, RG126, it is now necessary for a licensee to maintain professional indemnity (PI) insurance, which meets certain standards, some of which are more onerous than are required of accountants.
Since the CPA Australia PI Insurance Scheme has never been designed to meet the conditions of RG126, members who are involved in this work need to arrange PI insurance cover outside of the scheme.
CPA Australia's PI Insurance Scheme manager, Fenton Green & Co, has an expertise in this area and is able to assist financial planners with their specific insurance needs.
Current members of the CPA Australia PI Insurance Scheme who are affected by the new regulations will be contacted by Fenton Green & Co and alternative arrangements offered.
ASIC's new regulations apply to a licensees' existing business from 1 July 2008. The regulations have applied to new businesses from 1 January 2008.
Further information
