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Exams could pay off with lower PI rates

Advisers who sit written QCF level four exams may get more favourable professional indemnity insurance terms to those who sit alternative assessments, according to PYV.

Chief executive Neil Pointon says if written exams are perceived to be more thorough, underwriters may offer better terms to those advisers.

He says: “If there is an argument that written qualifications are a better route to higher qualifications, then underwriters will look to reflect that.”

Pointon adds that advisers who achieve QCF level four through alternative assessments will still receive better terms than they do currently.

He says: “I do not think underwriters will penalise advisers for taking the alternative assessment route because it is still an improvement on the current minimum qualification. But if an adviser has the full written qualification, I am sure that the broker would represent that to underwriters to get better terms.”

Collegiate Management Services head of underwriting Richard Turnbull agrees that advisers with written exams might receive more favourable terms if it is considered the superior route to QCF level four. He says: “It is fair to say that if a particular method of assessment is considered better, that will be reflected in the rates offered to advisers.”

Evolve Financial Planning director Jason Witcombe says: “I think that is fair, it might be an incentive for advisers to get QCF level four via written exams if they want lower PII costs. Firms will have to weigh up whether those savings are of substantial benefit.”

Highclere Financial Services partner Alan Lakey says: “I would not have thought alternative assessments would be a weaker option. In some cases, it may be a more subjective assessment than written exams.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Simon Mansell - Jelly Blancmange? 28th January 2010 at 2:09 pm

    Don’t believe a word of it. Question: Do PI rates reflect higher qualifications now? Then if not what will change? The Legal Complaints Service (LCS) investigates complaints about solicitors. They handle over 300 legal complaints a day. Unless we get rid of the FOS & the FSA retrospective reviews we will get more complaints and higher PI. Like solicitors it will matter not what qualifications you have so don’t kid yourself that post RDR it will be Jelly Blancmange for all who survive the cull!

  2. This obviously makes a newsworthy press release to garner cheap publicity.
    However, having been told for several years in succession by a variety of firms that it was of no consequence to my PI policy or premium that I was in turn Associate, Fellow, Chartered or Certified while the vast majority of advisers remained steadfastly at FPC3, it’s offensive to suggest that the manner of my testing might now actually make more difference than the level of the qualification itself (whilst also accepting Simon’s point above that qualifications in themselves are no barrier to complaints or impropriety!!).

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