Do you have professional indemnity cover for your advice business?
- Yes – and I intend to keep it (88%)
- No – and I don't plan to get it (9%)
- Yes – but I plan to cancel it (3%)
- No – but I intend to obtain it (0%)
With professional indemnity cover being optional for financial advisers we thought we’d gauge the lay of the land in this week’s poll.
In December 2020 RiskinfoNZ reported that the FMA had decided not to make PI cover compulsory, following feedback from Financial Advice NZ’s members and others.
Also in December, NZI (owned by Australia Insurance Group) announced it would only offer PI cover to FAPs with three or more advisers after 15 March – the start of the new regulatory regime.
At the time, Clinton Stanger, owner of Curated Risk, estimated that 450 financial advisers are sole traders and advised them not to self-insure. This week The Adviser Platform began offering PI cover underwritten by QBE.
A few months on from the start of the new regime, what’s your position on PI cover?