[The Wrap] Industry blindsided by PI decision

The key development was that NZI, which we understand has around 60% market share, said it will no longer cover financial advice firms with three of less advisers.

Judging from the transitional licensing numbers issued by the FMA that is likely to be the majority of the industry.

This decision by one player is likely to reshape the whole financial advice industry in the future. The options for advisers are operate with no PI cover, exit or join a big group.

This totally flies in the face of what the Ministry of Business, Innovation and Employment and the Financial Markets Authority has been saying for years.