Compliance support provider and licensee Paragem Partners has launched a service to help dealer groups meet the new professional indemnity requirements.

In late November ASIC released a new regulatory guide detailing compensation and insurance ar­rangements for financial planners and other AFS licensees.

Ian Knox, managing director of Paragem, says fears that under­writers will have a captive market, charge too much and favour institutions are unwarranted.

“The broadening of insurance is welcome,” he says.

“It will cost more but there are ways to contain the costs. We feel premiums can be contained and that underwriters will be able to assess risk better if there is a compliance accreditation that the business has been assessed by an independent expert.”

Paragem intends to provide the service to all new licences issued from 2008.