Changes to Claims as a Financial Service – LMI Group Fully Licensed
Since the Financial Sector Reform (Hayne Royal Commission Response) Bill was passed on the 10th December 2020, the exemption that existed in the Corporations Act 2001 (Cth) in respect of Claims Handling and Settling in Australia has been removed. As such these services have become a ‘financial service’ as from the 1st January 2022.
This means that firms that prepare claims, loss adjusting practices that have settling authority; and third party administration /claims management companies are all required to have and maintain an Australian Financial Services Licence.
LMI Group has held a Financial Services Licence (No. 283777) since 2003 as we provide a range of services to the insurance and wider communities. As soon as the changes to claims were introduced we had our licence extended so that we are authorised to perform all Claims Handling and Settling Service activities.
This covers the following divisions:
- LMI Claims Preparation;
- LMI Forensic Accounting;
- LMI Mining; and
- Aequum Loss Adjusters
While loss adjusting services are technically exempt, we felt it important to include them for the situations where our clients entrust us with claim settlement authority.
Our Claims Management International division, which continues to grow rapidly, has its own AFS Licence (No. 530887) in recognition of the specialist nature of this division.
To learn more about LMI Group please visit www.LMIGroup.com