Australia’s peak accounting and self-managed super fund (SMSF) bodies have lodged a joint submission to the Treasury’s consultation on professional indemnity insurance (PII) in the context of the Compensation Scheme of Last Resort (CSLR).
In the submission, Chartered Accountants Australia and New Zealand (CA ANZ), CPA Australia, the Institute of Public Accountants and the SMSF Association urged Treasury to lift transparency and strengthen data collection on PII claims.
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In a statement, CA ANZ said robust, responsive PII is central to consumer protection and confidence in the retail financial advice system, given its role in compensating clients for losses stemming from poor-quality advice or adviser misconduct.
However, the groups cautioned that PII is not designed to underwrite product failures or systemic collapses, and should not be treated as the primary backstop for large-scale industry failures.
CA ANZ said: “A key issue we raised is the lack of transparency around how PII is currently responding to claims. There is limited publicly available data on whether claims are paid, unpaid or declined, making it difficult to assess whether PII arrangements are working as intended or where coverage gaps may exist.
“We have called for improved reporting of PII claims data to better inform regulators, industry and policymakers.”
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By GlobalDataIn the joint statement, the accounting bodies also voiced support for ongoing, consistent oversight of PII by the Australian Securities and Investments Commission (ASIC).
The organisations said that, while the current regulatory framework for PII is broadly adequate, stronger monitoring would bolster compliance and enhance consumer protection.
They also highlighted growing pressures on the CSLR, arguing that regulatory efforts should tilt more decisively towards prevention, with a focus on improved governance, tighter management of conflicts and earlier regulatory intervention.
“We require members in public practice to hold robust PII that meets clear minimum standards, including a long‑term run‑off cover.
“These requirements support high professional standards, reduce risk, and improve the availability and effectiveness of insurance coverage,” the statement added.
