Professional indemnity insurance. Does it really protect clients from poor fin

Get quotes

Professional indemnity insurance. Does it really protect clients from poor financial advice?

In another story from the other side of the world, we get a Kiwi perspective on the Aussie financial services industry. In an article posted on nzherald.co.nz, David Chaplin writes on the subject of the compensation arrangements that exist for clients who have suffered losses as a result of poor advice given by their financial advisers.

And one of the points he makes is that professional indemnity insurance has shown itself to be somewhat lacking in its effectiveness from the client’s point of view. In support of his argument, he cites the now collapsed advisory firm, Vestar, against which more than 150 investors are taking legal action. The problem is that their case probably won’t be heard until next year. So, irrespective of Vestar’s professional indemnity insurance status, the investors are not about to receive compensation any time soon.

The solution? Well, according to Chaplin, the Australian authorities are looking at reforming the professional indemnity position and/or creating an industry-financed compensation fund. And he also thinks that New Zealand’s regulators will be keeping a close eye on developments.

Find the professional indemnity insurance you need, at highly competitive prices, at 03333 211403

No Professional Indemnity Insurance implications for financial advisers forging links with solicitors

In an article posted on citywire.co.uk, Martyn Harrison of AXA’s IFA consultancy service has drawn attention to the advantages of advisers forging closer links with solicitors. He argues that whilst there doesn’t necessarily need to be a formal contract, advisers should think about replacing the typically loose and informal arrangements they have with some form of agreed statement of intent. This would focus both parties on what they expect to achieve together and what each side should be delivering. He goes on to suggest that they might even consider establishing some form of distinct trading identity which, he states, would raise no regulatory or professional indemnity insurance issues.

You can obtain highly competitive professional indemnity insurance cover for hundreds of different professions by calling at 01480 470220.

Brit appoints Portfolio Manager with Professional Indemnity Insurance e-trading

In his new role with Brit Insurance as UK Portfolio Manager, Professional Risks, Daniel Mitchell will be involved in strategy planning and price setting as well as assessing risk appetite going forward. Prior to his most recent position as Financial Risks Underwriting Manager for Brit’s London region, Daniel had responsibility for the company’s professional indemnity insurance e-trading business.

Find the professional indemnity insurance you need, at highly competitive prices, at 03333 211403

Ballot decision could settle fate of Ireland’s solicitors’ Professional Indemnity Insurance funds

Will the members of Ireland’s Law Society agree to provide emergency financial support for the SMDF (Solicitors Mutual Defence Fund)? The answer to that question hangs on the outcome of a postal ballot called for at a special general meeting of the Society.

The SMDF, set up to provide affordable professional indemnity insurance for the Society’s members, is set be wound up anyway. But with uninsured liabilities of some €16 million, how orderly will that wind up be? The proposal being voted on is that a levy should be imposed on all of Ireland’s practicing solicitors (both the minority insured by the Fund and the majority who are covered by commercial insurers) to ensure that existing claims can be paid.

If the proposal gets voted down, there would seem to be no alternative to the appointment of a liquidator who could refuse to pay out on those claims. It would also mean that firms insured by the Fund would be forced to seek out professional indemnity cover from commercial insurers – something which many of them will find difficult if not impossible to do.

Announcement of the result of the ballot is expected in mid-June.

You can obtain highly competitive professional indemnity insurance cover for hundreds of different professions by calling at 01480 470220.