Financial Planners

Never before have Financial planning firms operated in such a volatile investment environment and under increasing regulatory scrutiny. CPR Insurance has a deep understanding of the industry and the effects of increasing legislation such as ASIC’s Regulatory Guide 126 (RG126), which formalises the insurance requirements for financial planners, and arranges the best available cover to suit. They obtain tailored insurance coverage providing peace of mind to all Australian Financial Services License Holders.

 

Why do I need cover?

The policy must cover the acts of the licensee and its representatives and all past and present Authorised Representatives including its Subsidiaries.

 Some of the exposures that a Financial Planner could face are allegations for misleading and deceptive conduct, inappropriate financial advice or poor profiling of clients, failing to recommend adequate levels of insurance or to arrange insurance, inappropriate estate planning resulting in financial loss, breach of privacy, fraud and dishonesty of their employees and authorised representatives

 

What Cover is available?

There are only a few insurers that are able to provide a Civil liability policy that indemnifies the licensee against liability for an economic loss suffered by their retail clients. This could  be a breach of the relevant sections of the Corporations Act by the licensee or its representatives.  Coverage for breaches that arise from fraudulent and dishonest conduct is also provided, including all cover for misleading or deceptive conduct under all statutes, but also for Intellectual property (including breach of copyright), defamation, fraud or dishonesty of principals, partners, directors or employees (including theft of third party money or securities), Loss of documents cover and most importantly Defence costs

You should also seek Policy Features which include aflexible definition of what is an approved product (those approved in writing by the policyholder’s investment committee) and products also not on the approved product list, but which are the subject of written guidelines from the policyholder. A broad definition of insured to include temporary contract labour, self-employed persons, labour-only sub-contractors under the direction and direct supervision of the policyholder, Automatic cover for subsidiaries and Worldwide territorial cover.

There should be cover for findings and awards by external dispute resolution bodies. Some policies include Court attendance costs, an extended reporting period, property cover for lost documents, Quasi judicial costs and even a Legal advisory Panel. Also available are extensions for authorised representatives (past and present) including for activities for Margin lending and gearing, Mortgage services, Non-life insurance, Life insurance and Fidelity.

 

How do I obtain a quote for cover?

Insurers like Australian Financial Services License Holders that can demonstrate a positive approach to risk management. Insurers will require an Underwriting submission to be provided with Information including a proposal form, a copy of a Financial Services Guide, a copy of a Statement of Advice, a copy of the current Approved Product List, a copy of the complaints register and full claims experience including full details of all paid and outstanding matters. Start up operations will need to also provide resumés for all principals, partners or directors and details of any past claims with previous Licensees.

 

Who can help?

It is important to work with professionals who understand your industry and your insurance needs.  An insurance broker's role is to act as your representative and work in your interests, seeking the best cover at the best price for you from market knowledge. Robert Cooper has been the Insurance Broker for many small to medium Financial Planning groups in Queensland and assisted with many of their claims. So call a good Insurance Broker.  

Call CPR.- Experts who will save you!

Regulation RG126 - Financial Planners Insurance Requirements

Examples of claims against Financial Planners

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This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

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Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

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