View more on these topics

Bamford blasts FSA as his PI cost soars

Sofa chairman and Informed Choice director Nick Bamford is blaming the FSA for the PI insurance crisis.

He has finally secured PI cover but his premium has soared to £28,875 from £7,950 last year and from just £2,750 in February 2001. The excess has risen to £15,000 per case from £10,000 last year despite no claims against his firm in eight years of trading.

Bamford says poor FSA regulation of products such as splits means small IFAs are paying a high cost to remain independent and will have to restructure their businesses to absorb higher premiums.

He says: “Because of the PI hike, we have had to sit down and look at the business. We will have to put our prices up and look at the deal that we have with our sales staff. This whole debacle is down to the regulator&#39s abject failure to regulate. PI insurers see themselves as the compensation system for financial services.”

FSA spokesman David Cliffe says: “The rise in premiums is a reflection of changes in the insurance market. Increases in PI premiums have not occurred as a result of regulatory issues.”

Recommended

On the right road to clarity and low cost

The Treasury&#39s consultation on Sandler stakeholder products, which came out at the start of the month, gives us the opportunity to get a snapshot of where Government thinking is heading.A great deal has happened in the last few years. In 1998, the Treasury introduced Cat standards, largely the result of the drive of Paul Diggle […]

Legal & General bond grows and protects

Legal & General has established the index growth and protection plan, a guaranteed equity bond that is linked to the FTSE 100 index for a term of five and a half years. The bond guarantees the return of all the original capital at the end of the term regardless of the performance of the index. […]

Euro threat to tax-free cash from pension

The ABI is warning that the tax-free lump sum on occupational pensions could be scrapped under the latest proposals from the European Parliament.The latest version of its occupational pensions directive would require all benefits from an occupational pension fund to be converted to income. The amendment was passed by MEPs on the economic and monetary […]

Means to a trend

In the last couple of articles, I have looked at trends in male and female life expectancy over the last few decades and highlighted the implications of the significant increases we have seen.I considered the impact these trends could have on the demand from clients for conventional annuities or flexible retirement income options such as […]

FAMR – a familiar response

Pension specialist Fiona Tait takes a look at the Financial Advice Market Review and assesses the three areas where it suggests improvements can be made With significant budget changes ruled out (for a while anyway), the pension community briefly turned its attention to the FCA’s final report on its Financial Advice Market Review (FAMR), hoping […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com