Accountants Beware: Potential Lawsuits Ahead
Beware of the potential liability issues that are hanging out there in the world of financial planning, warns, Camico and CNA, both companies specializing in providing liability coverage to the accounting profession. With the advent of personal financial planning services for clients, these two companies are concerned that the complexities of offering this service without rigorous interviewing methods could be devastating to the accounting profession in terms of malpractice.
"Potentially, there are additional problems in personal financial planning because it's more complex," says Joe Wolfe, risk management director for CNA Pro, that company's professional liability unit. "There is a need for a greater level of documentation and client screening."
While there haven't been a slew of claims coming through due to personal financial planning yet, the two companies are stressing the importance of a heads up among the industry.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.