I recently renewed my professional indemnity insurance and submitted the policy schedule to the FSA.
The FSA noticed that my excess increased to £10,000 for endowment claims and notified me that I now need an extra £7,000 in my bank just in case I get a complaint. The alternative to this was to declare that I would not recommend any more endowment plans.
I pointed out to the FSA that I could not give this declaration as it would prevent me from advising on savings endowments such as friendly society accounts, etc.
Two weeks on, I was still waiting for the PI people to provide me with an endorsement that only relates to mortgage endowments. Needless to say, I am still waiting for such an endorsement.
It is a shame that both the FSA and the PI industry cannot use common sense on interpreting the rules and risks. Oh, my crime is that my company has recommended three endowment plans.
On a positive note, the FSA is doing a wonderful job in confusing the public with the various rules that we have to comply with – keep it up,you are keeping me in a job.