FAAA submission on enhancing professional indemnity insurance
20
Feb
2026
From FAAA - Financial Advice Association Australia
Sarah Abood
In its submission to Treasury on enhancing professional indemnity insurance, the FAAA does not suggest substantial changes to the current PII regime, but has identified a number of options to maximise recoveries and to minimise the cost to the CSLR to improve outcomes for impacted clients. It continues to call for CSLR reforms that will have a greater impact on confidence and system integrity.
The FAAA says in its submission: “We do not believe potential changes to PII obligations will materially reduce the financial exposure facing victims of financial collapses (Shield and First Guardian being notable examples), nor will they materially improve the sustainability of the Compensation Scheme of Last Resort (CSLR). Urgent reforms to improve the sustainability of the CSLR, to address financial firm conflicts of interest and lax governance, and to promote active enforcement are necessary.”
