In view of the near inability for small IFA firms to get a renewal – even those with no claims in the last five years and none pending – is it not time the PI insurance mandatory requirement was abolished?
If abolition is an abhorrence to the FSA and the loquacious Consumers' Association, I would prefer the formation of a national association of small IFAs acting as a co-operative (excluding networks) purely for PI insurance with a sum insured of £1m and a £5,000 suggested excess.
Such an enterprise could be promoted by the Pass organisation or similar. As for the premium, perhaps 20 per cent of the FSA fee should be the norm – and those with previous claims against them could have various additional loadings.
Just how long do we have to wait for the FSA to act? Or are we to be treated similarly to the nursing home proprietors who, in their regulatory sphere, have had to close down because of inefficient officialdom and regulation over minor differences in room sizes, etc?
Only now, when the elderly are out in the cold, has officialdom relented by altering mandatory rulings to “guidelines”.
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