View more on these topics

IFA calls on advisers to join captive PI scheme

IFA CFS Independent is setting up a captive professional indemnity insurance scheme and is looking for other IFAs to come on board.

Managing director Andy Harwood envisages a Guernsey-based scheme with around 50 IFAs all paying an average premium of £15,000, giving a total pot of £750,000.

If, as Harwood anticipates, cover of £1.5m is needed, the shortfall of £750,000 would be met by a guarantee, with each firm committing itself to an additional £15,000 if necessary.

However, he says there may be a refund if claims&#39 experience is favourable, which he expects if other participants have similar experience to CFS. Harwood believes a captive scheme would benefit IFAs which are unable to find PI cover or are paying exorbitant premiums.

He says participants would need to be underwritten in terms of claims&#39 experience but points out that just because an IFA cannot get PI cover does not mean they are high-risk.

Harwood says: ” IFAs interested in finding out more about such a scheme should get in touch.” His website is www. cfsindependent.com.

Collegiate managing director Tony Howe says: “I think if this is done properly, with people on board who are happy to share the risk, then it could be very advantageous and certainly takes advantage of the new rules. The only thing that stands in its way is if participants are not happy sharing risk with each other.”

Recommended

Insight shares property expertise

INSIGHT INVESTMENT INSIGHT FOUNDATION PROPERTY TRUST Type: Closed-ended fund Aim: Income and growth by investing in UK commercial property Minimum investment: Lump sum £2,000 Investment split: 37% retail, 33% industrial, 30% offices Isa link: Yes Pep transfers: Yes Place of registration: Guernsey Charges: Initial up to 2.5%, annual up to 1.3% Commission: Initial up to […]

Buy to let service offers investors discount on new homes

SmartNewHomes.com is launching a new homes investor service which offers buy to let investors discounts of up to 15 per cent on new homes schemes across the UK. The Smart Investor Club offers priority notification of investment opportunities ahead of general release to other buyers, as well as providing investors with an insight into the […]

Provision priority

The Financial Ombudsman has concerns over reviewable premiums on critical-illness policies. What needs to be done to allay these concerns and what will be the effect on the market? McKie: Our plan offers five-yearly reviewable premiums where only the expectations of future morbidity experience can be reviewed. We appreciate the concerns that the FOS have […]

Prime of Ms Brodie Smith

Everyone loves a party and, within financial services, many would place famous society beauty and the doyenne of the investment trust sector Annabel Brodie-Smith at the top of their invite list. But was she really spotted hobnobbing with the likes of Nationwide chief executive Philip Williamson and Skipton chief executive John Goodfellow at the Building […]

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