The Self-Managed Super Fund Professionals’ Association (SPAA) is calling for standardisation of terms in professional indemnity (PI) insurance for financial advisers.

SPAA Chairman Sharyn Long says inconsistencies in policy terms between insurers and the association need to be addressed to ensure self-managed superannuation fund trustees are adequately protected.

“We are asking how trustees can obtain the best protection if something goes wrong with their financial adviser,” she told insuranceNEWS.com.au.

“We are suggesting there is some room for improvement in PI cover to ensure maximum protection with standardisation of terms.”

The SPAA is calling for the Australian Securities and Investments Commission to do more to review and monitor financial advisers’ PI policies.

It wants a standardised policy to drive scale among insurers and ultimately provide better cover.

“Standardising  insurance policy terms would help to plug the significant gaps where clients find it difficult to receive compensation,” she said.

Standardisation of terms would also encourage insurers to develop policies covering the same industry sectors.