Claims as a Financial Service

Just a reminder that coming up to 3 years ago, (as from 1 January 2022) anyone providing claims services which includes claims preparation, third party administration of claims, and claims management services has been required under the Corporations Act (2010) Cth to hold an Australian Financial Services Licence.

The regulations are designed to achieve a higher level of claim service and in particular hold licensees accountable for a minimum standard of timeliness, transparency (including setting clear expectations) and fairness. They also want those involved in claims to take into account the circumstances of the claimant (particularly if they are suffering financial hardship or are otherwise vulnerable).  In certain cases there is also an onus on clear and timely communication.

The reason for my reminder is that LMI Group have been asked to take over several claims of late where the person purporting to be a claims preparer, often without using that term, has not been licenced and have either provided advice that has adversely affected the claim or where the fees being charged are astronomical.

Before engaging or recommending someone be engaged I do urge you to check that the firm is in fact licenced under the act.