View more on these topics

Firms applying for IFA captive PI role

The FSA has received formal applications from companies looking to become authorised as a captive professional indemnity insurer for IFAs.

As revealed in Money Marketing in February, there have been talks between the FSA, Aifa and the ABI about setting up a captive insurer selling PI insurance to IFAs on a commercial basis.

Aifa director general Paul Smee says he is encouraged by the progress but would not give details on the parties involved.

FSA director of investment firms David Kenmir says the FSA would look favourably upon any application but it would have to meet its regulatory requirements to be granted authorisation.

He would not be drawn on how long it could take for any insurer to come to the market.

He said an IFA firm does not have to be the size of the Falcon Group to apply for a PI waiver and he has received 20 applications from smaller IFAs looking for waivers. Falcon, which has an annual turnover of £10m, announced a month ago it had won a year-long PI waiver.

Of the nearly 2,000 IFA firms looking to renew their cover between September 1 and last week, 69 per cent – 1,380 – were successful, according to Kenmir.

Kenmir says: “A few firms are formally talking to us. Some have actually lodged applications to provide PI for IFAs. It is in everybody&#39s interest for these firms to come into the market as it would mean more people writing business. People think they have to be the size of the Falcon Group to get a waiver but they don&#39t.”

Aifa director general Paul Smee says: “We are aware of the initiatives going on. We are determined to facilitate discussions between the interested parties to make sure the best solution comes together for the marketplace.”


Landlords maintain gearing levels in buy-to-let market

Buy-to-let lending remains at comfortable levels relative to property valuations, with less than 5 per cent of landlords having loans over 75 per cent of the value of their investment property portfolios, says Paragon Mortgages.The March issue of Paragon&#39s quarterly buy-to-let trends survey shows that the average loan to value is just 42.7 per cent, […]

Serious business

Product providers have another two months to update their critical-illness products to meet the revised ABI statement of best practice. This involves changes to the definitions of cancer and heart attack and allows early-stage prostate cancer to be excluded in response to advancements in medical treatments and screening techniques.The change to the cancer definition is […]

&#39Shutting down final-salary schemes doesn&#39t worry staff&#39

A tidal wave of companies closing final-salary schemes to new members will gather force as firms realise that staff retention is not affected, the Pensions Policy Institute conference was told last week.Legal & General pensions strategy director Adrian Boulding said employers would find that he savings made by closing defined-benefit schemes to new members would […]

Phillip Cartwright

London & Country managing director Phillip Cartwright is not too worried about making waves or ruffling feathers. In fact, when he is passionate about something and thinks he is right, he goes out of his way to do just that.Nothing exemplifies this more than his recent attack on the market over the length of time […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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