Clerical Medical is the first pro-vider to commit to a continued subsidy of the Financial Services Compensation Scheme after the Pass scheme closes.
IFAs have been horrified to learn that providers' voluntary subsidy of the scheme through Pass comes to a close at the end of the year, with no current plans to extend it.
Many firms have been struggling to meet their FSCS levy requirements for this year.
Providers have been unwilling to commit to a continuation of the scheme despite warnings from FSA managing director David Kenmir about what this could mean for distribution.
Clerical is so far the only provider to support IFAs and is calling on other providers to continue the subsidy.
Managing director John Hiew says: “Clerical Medical will continue to support IFAs by making a substantial contribution to the scheme as a main provider. It is ess-ential that all sectors of the industry support IFAs in these difficult times, including all other product providers, through a continuation of the subsidy.”
Aifa director of policy Fay Goddard says: “This is very welcome news – it is very nice to see Clerical Medical leading the field.”
ABI director general Mary Francis says she has plenty to keep her busy after she steps down, including the dramatic arts, supporting Spurs and the Press Complaints Commission