Poll Results – Claims Handling Services

Do you support the move to include claims handling under the definition of ‘financial service’?
  • Yes (48%)
  • No (43%)
  • Not sure (8%)

Advisers appear to be evenly split when it comes to the results of our latest poll.

Considering the issue of whether claims handling activities should be brought under the umbrella of the definition of ‘financial service’, just under half (47 percent) of those who have voted so far agree it should, while 44 percent disagree.

We asked the question after ASIC released a draft information sheet which addressed the impending removal of the exemption of claims handling activities from the definition of ‘financial service’ (see: AFS Licence for Claims Handling Services).

While there seemed initially to be some confusion around whether advice licensees would need to vary their licences, the AFA believes financial advisers will be exempt from these new obligations and recommends its members do nothing at this stage (see: AFA Advice on Removal of Claims Handling Exemption as a Financial Service).

Supporting the move to dispense with the exemption around claims handling activities, one of the respondents to our poll commented:

Qualified Advisers and AFSLs – no additional licensing requirements needed. Others who are not qualified advisers under an AFSL – yes they should be required to hold an AFSL and act in [the] best interests of claimants including needing to document their claims handling recommendations, completing an affordability assessment of the fees they will charge the claimant…”

Our poll will remain live for another week and we are keen to hear your views…