Well this is the last ezine for the year so let’s start it with some Christmas wishes that everyone has a well-deserved break, gets to enjoy some quality time relaxing away from the rigours of work and comes back refreshed for 2020.
At this time last year, we were dominated by consultation exercises which thankfully are now largely past us with everyone now well into implementation. The whole system still needs to shake out under the new legislation and regulation but at least the overall shape is reasonably clear. I’m expecting 2020 to be the year where we all discover the devil in the detail!
In amongst all this change we have been fielding a few enquiries around what will be happening with PI given the arrival of FAPs (financial advice providers). We have been talking to both Aon and NZI about the impact of FAPs and the changing obligations of directors. NZI has confirmed in writing that:
“We are well underway towards finalising coverage for FAPs and individual advisers under the new regulatory regime including pricing and coverage models for FAPs. Our current thinking is that there may well be separate arrangements dependent on the structures finally adopted by advisers and their FAPs. As an example of the potential complexity, some advisers may stay as contractors to FAPs whilst other FAPs may only have employee shareholders. We are looking to retain flexibility dependent on the structure and desire of the group.”
So, in summary until all that work is complete, there won’t be any change. The recommendation from both Aon and NZI is to stick to your existing PI arrangements for now. I’ve included a few other points from the conversations we have had with Aon and NZI in my post on the PI scheme and FAPs. We may know more by March/April next year as we approach next renewal.
On a different topic, we all know the internet has turned into a bit of a cesspit over recent years. Relentless scams, phishing and hacking attacks. Earlier this year the TripleA’s website was hacked and we had to activate our cyber policy. I’ve done, what is hopefully a useful little article, on our experience from this and the lessons learnt which are probably applicable to all TripleA members. I strongly recommend you read it.
So, to close out for the year there is our standard Christmas checklist as a reminder for you of some of the things you may wish to consider as you take a break. On behalf of the Board and TripleA team can I wish you all the best for a relaxing break and we look forward to touching base with everyone in the New Year.
Wayne Smith, CEO