Core Viewpoint - Australia's peak accounting and self-managed super fund (SMSF) bodies have submitted a joint request to the Treasury for improved transparency and data collection regarding professional indemnity insurance (PII) claims in relation to the Compensation Scheme of Last Resort (CSLR) [1][2]. Group 1: Importance of PII - Robust and responsive PII is essential for consumer protection and confidence in the retail financial advice system, as it compensates clients for losses due to poor-quality advice or adviser misconduct [2]. - PII is not intended to cover product failures or systemic collapses and should not be seen as the primary safety net for large-scale industry failures [2]. Group 2: Transparency and Data Collection - There is a significant lack of transparency regarding how PII responds to claims, with limited publicly available data on claims being paid, unpaid, or declined, making it challenging to evaluate the effectiveness of PII arrangements [3]. - The accounting bodies have called for enhanced reporting of PII claims data to better inform regulators, industry, and policymakers [3]. Group 3: Regulatory Oversight and Compliance - Ongoing and consistent oversight of PII by the Australian Securities and Investments Commission (ASIC) is supported by the accounting organizations [3]. - While the current regulatory framework for PII is generally adequate, stronger monitoring is necessary to improve compliance and enhance consumer protection [4]. Group 4: Governance and Risk Management - The organizations emphasize the need for regulatory efforts to focus more on prevention, improved governance, tighter management of conflicts, and earlier regulatory intervention [4]. - Members in public practice are required to maintain robust PII that meets clear minimum standards, including long-term run-off cover, to support high professional standards and reduce risk [5].