Emery says IFAs must be better protected against clients encouraged by the media to make misselling claims and wants a body to run alongside existing trade organisations.
He warns that the cost of PI insurance and excesses will continue to rise and predicts every business plan will have to contain a provision for two or three claims a year per adviser.
Emery says a body funded by IFAs could challenge cases where awards are made by the ombudsman against advisers.
He believes IFAs should be able to pursue compensation where cases are “based entirely on the claimant’s greed”. He also thinks there needs to be a clearer definition of misselling.
Emery says: “The ombudsman is not very well qualified to deal with these issues. We need a multi-themed approach – to fight some big cases and establish a precedent so people get the message and use financial journalists to get the message out.”
Syndaxi Financial Planning director Robert Reid says: “There is no evidence IFAs are willing to fund something like this.”