Mortgage Brokers Legislation Update

Mortgage Brokers Legislation update

To ensure that the policy coverage we arrange for the Mortgage & Finance Broking Industry is compliant with the latest Legislation and Industry requirements we constantly monitor any proposed changes. The latest change to impact the insurance coverage is the implementation of the Australian Financial Complaints Authority (AFCA) as the External Dispute Resolution (EDR) body.
 
AFCA is the new external dispute resolution scheme appointed by ASIC who will be dealing with consumers complaints in the Finance Industry from 1 November 2018,  AFCA will be replacing the prior bodies who handled complaints of a financial nature (such as CIO, FOS & SCT). The new AFCA rules and changes can be located on the AFCA website.
 
How does this affect your Professional Indemnity Insurance?
The external dispute resolution (EDR) maximum limit will increase to $500,000 for any one claim, from the current $323,500 (CIO) limit on any one claim
 
What do you need to do about the limit increase if you are currently with Insurance House? 
We confirm that effective from 1 November 2018 an automatic increase to $500,000 for any one claim to the External Dispute Resolution (EDR) Scheme will be made to all existing and new Professional Indemnity Insurance policies under the Mortgage & Finance Broking Insurance Scheme with Insurance House and ProRisk.
 
All you need to do is ensure that your policy is up to date and active with us.
 
Costs?
There will be no additional charges to your account for these new statutory legal requirement changes.
 
If your Policy is falling due in October or November we suggest you go online as soon as possible to renew and confirm your Professional Indemnity Insurance is current and in place. 
 
Please do not hesitate to contact me if you require anything further or any other obligation free insurance quotations on 1300 444 142 or mortgage@ihgroup.com.au

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