View more on these topics

FSA to take &#39kindly&#39 stance on PI insurance for IFAs

The FSA plans to soften its attitude towards IFA firms unable to get compliant PI cover as it takes steps to address what it has identified as a serious concern.

IFAs having difficulty getting PI cover because of the state of the market rather than past wrong-doings are to be treated more “kindly” by the FSA in a move which has been welcomed by IFAs and Aifa.

This week, the FSA asked Aifa to survey its membership to identify if firms are having difficulty getting cover and how much they are paying.

FSA director of investment firms David Kenmir says the regulator hopes to take action by November when many policies are up for renewal.

Under the PIA, PI insurance was mandatory but firms which had difficulties in getting cover were often handled with discretion. With N2 and statutory regulation, that discretion was removed and anyone without PI cover faces dis- ciplinary action.

The FSA is trying to redress the balance by recognising other factors such as capital adequacy of individual firms.

Aifa director general Paul Smee says: “We are pleased that after extensive pressure the FSA appears to be taking the matter seriously and coming up with an imaginative solution.”

Kenmir says: “You need to look at each individual case on its own merits. You might look at a firm more kindly because its overall capital adequacy position is sufficient. We will work with firms which have made genuine attempts to get compliant PI cover.”

Recommended

Two new fixed rates from Chelsea

Chelsea Building Society has announced the launch of two fixed rate mortgages available from August 31. The first will be capped at 2.99 per cent for two years and the other fixed at 4.69 per cent for three years. Both will revert to the Society&#39s standard variable rate following the fixed periods. Chelsea&#39s SVR is […]

E swoops to conquer

It may not be obvious to everyone but insiders such as Financial Technology Centre director Ian McKenna say the signs are definitely there. Over the past six months, the financial services industry has finally been bitten by the technology bug. The words of Ron Sandler&#39s report are etched on McKenna&#39s brain to the extent that […]

Cassells is out as Old Mutual restructures

The manager of Old Mutual&#39s flagship hallmark growth and income portfolios, Logie Cassells, has left the firm. His departure comes with the firm seeking to boost its flagging performance. It is another round of moves at Old Mutual following the departure of its European equities team and loss of marketing director Barry Russell. The restructure […]

New Star Investment Funds – New Star High Yield Bond Fund

Wednesday, 4 September 2002 Type: Oeic Aim: Income by investing in high yield and investment grade bonds Minimum investment: Lump sum £1,000, monthly £100 Investment split: High yield bonds 55%, investment grade bonds 45% Yield: 7% gross Isa link: Yes Pep transfers: Yes Charges: Initial 4.25%, annual 1% Special offer: Initial charge discounted by 0.5% […]

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