View more on these topics

FSCS chief welcomes ‘serious questions’ on PI


Financial Services Compensation Scheme chief executive Mark Neale has welcomed the “serious questions” being asked about the professional indemnity insurance market in a recent FCA consultation.

The regulator published its consultation on the FSCS funding model last week.

The consultation says the regulator is considering introducing mandatory wording on professional indemnity insurance policies as well as ensuring policies provide cover for any FSCS claims, introducing restrictions on policy excess levels and restricted use of exclusions for some products.

In a blog on the FSCS’ website, Neale says:It’s been clear to FSCS for some time that these policies often afford firms little or no protection against claims and can exclude recovery action by FSCS after a failure has occurred. In other words, FSCS is promoted from last resort to first resort when something goes wrong.”

Neale also supports re-thinking compensation limits, for example, the FCA is also considering updating the limits on consumer coverage following the pension freedoms.

He says: “There is a close link between consumer confidence and consumer understanding. As things stand, the differing compensation limits for different products work against understanding.

“In the case of retirement savings, these differences are more salient than ever now that people have choice about how to invest to generate an income in retirement.”



Paul Beasley: FSCS reform proposals do not go far enough

The proposals in the FCA’s consultation paper on Financial Services Compensation Scheme reform are getting a cautious welcome. It does appear that the FCA have listened (a little) which is cause for some celebration. However, I see no prospect of seeing reduced bills coming to my inbox. Their proposals simply don’t go far enough. Increased […]


Aegon: Providers should share FSCS bills with advisers

Providers and advisers should share the burden of Financial Services Compensation Scheme bills, Aegon says. In its response to the FCA consultation paper to review FSCS funding, Aegon pensions director Steven Cameron says the regulator must avoid over-burdening intermediaries with a disproportionate share of overall levies. He says: “It’s ultimately not in the customer’s interest if […]


Industry hits out at FCA as product levy ruled out of FSCS review

The FCA has all but ruled out a product levy to fund the Financial Services Compensation Scheme, but it is considering how to better link product risk with fees. In its consultation paper reviewing the funding of the FSCS, released today, the FCA says: “We considered this [product sales levy] carefully. We understand the desire to […]

Childcare - thumbnail

Three questions for employers…

The Family and Childcare Trust’s annual survey has been widely reported in the media and the two headline figures were these: the average cost of a nursery place for a child under two has risen by 33 per cent since 2010; and the costs have risen by five per cent in a single year.

Scheme pays explained

By Fiona Hanrahan, senior product insight and technical support analyst We’ve received lots of queries on scheme pays and when it can be used. This article explains how it works and the conditions which apply. What is ‘scheme pays’? If an individual exceeds the annual allowance (AA) and an AA tax charge is due, they […]


News and expert analysis straight to your inbox

Sign up


There are 4 comments at the moment, we would love to hear your opinion too.

  1. Have a guess what will happen to PII premiums and access to cover if the regulator imposes standard policy wordings restricts levels of excess and insists on covering off FSCS claims.
    Go on have a guess?!

  2. He’s not bothered about that Nick, as long as he shifts the emphasis of claims away from his organisation, it is a problem solved (of course, it isn’t though is it, because the real solution should be to limit the potential for claims and not to facilitate a means by which to pay increasingly more by raising limits, as he suggests). If he was being balanced in his viewpoint, he would have added .. ‘and of course we need to ensure that the cost burden does not increase for the sector and for those clients and consumers who ultimately are burdened with paying our levy’. Selfish agendas and self preservation, that’s all it’s about I’m afraid, not real meaningful change, as that’s too difficult (like stopping advice and sales of unregulated products by regulated firms)!

  3. Here’s a serious question. Why not get the FCA to do its job properly (some bloody hope) and enact measures to prevent uninsured losses falling on the FSCS?

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