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IFA accuses FSA of snubbing small firms over PI

A Welsh IFA claims the FSA is operating double standards towards his difficulties in finding PI cover, with the regulator saying one thing in public but acting differently when dealing with firms.

Philip Evans & Associates principal Philip Evans says the regulator is threatening to shut him down because he has been unable to find adequate PI cover.

But he says the only reason he has had difficulty is because PI underwriter Dickson Manchester, the firm he has used throughout his 19-year career as an IFA, is effectively pulling out of the market.

Evans says the FSA claims it is willing to work with firms which are having difficulty in the contracting PI market but says he has seen no indication that this is the case.

He says the regulator is only willing to help big firms with spare capital and is turning its back on smaller firms

Evans says: “The market is becoming very small and we are chasing the same underwriters who are picking and choosing who they are offering cover to. We are a small two-man band and through no fault of our own have been unable to find PI cover. If the FSA keeps up their stance, there will be only banks left advising clients.”

FSA spokesman Rob McIvor says: “We want to work with firms who are genuinely trying to get cover. We understand the problems but we still have to enforce the rules. We are not looking to drive people out of the market.”

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