View more on these topics

Cover help and threats as FSA fails to communicate

The FSA is sending out 1,200 letters to IFA firms that it has identified as having legitimate difficulties in getting prof- essional indemnity cover, promising to work on a one-on-one basis with them to find compliant insurance.

But despite the move, IFAs claim they are still receiving conflicting signals from the regulator.

One firm, Philip Evans & Associates, received the letter from director of the investment firms division David Kenmir, detailing the regulator&#39s new softer approach.

But a subsequent letter from the firm&#39s immediate FSA supervisor warned that it would be suspended if it did not sort out its PI cover within seven days.

The firm says it is angry that the regulator says in public and in letters it is making steps to assist firms but is still threatening to suspend firms before it takes those steps.

The Kenmir letter says the FSA is looking at the problems and how they may be resolved, the availability and price of cover, the activities of PI brokers and whether there are any alternatives to high-priced cover.

Philip Evans & Associates principal Philip Evans says he received the Kenmir letter dated October 4 but four days later received a second letter dated October 8, threatening suspension by October 15 if cover was not arranged.

Evans says: “Obviously they are not sitting down and communicating with each other. The joke about it is that although we have kept the FSA fully informed along the way they have not been doing the same.”

FSA spokesman Rob McIvor says: “We will not tolerate people who are not willing rather than not able to get cover.”

Recommended

&#39Banks will clean up with Sandler products&#39

General practice IFAs targeting the middle market have two years to sort out their businesses before they start facing serious competition from highstreet banks selling Sandler&#39s new products, accor-ding to Clerical Medical.Head of intermediary strategic planning David Shelton says banks and building societies will have an advantage because they will be able to market the […]

Compulsion is morally wrong, says Standard

Standard Life is warning the Government that pension compulsion is morally wrong and it should instead bolster the state pension.In its submission to the Work and Pensions select committee, Standard says it supports former pensions minister Frank Field&#39s proposals for a new partially funded state pension even though it would mean an end to contracting-out […]

ABI wants &#39greater flexibility&#39 on annuity guarantees

Almost half of UK consumers are either very or fairly interested in receiving a money-back guarantee on their annuity purchase and are willing to accept reduced rates if this concession is allowed, according to research from the ABI.The main reason why 47 per cent of respondents to the trade body&#39s recent survey said they wanted […]

Zurich cuts 25% off dread cover

Zurich Financial Services claims it is aiming to undercut market rates by as much as 25 per cent with the launch of its new critical-illness term insurance product.Claiming to offer the most competitive first-year rates on the market, ZFS&#39s High Cover protection range incorporates critical-illness cover on a term basis and optional life cover, with […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment