View more on these topics

Kenmir claims PI crisis will root out &#39bad IFAs&#39

“Bad IFAs” `will be forced out by the professional indemnity crisis, says FSA head of investment firms David Kenmir.

He says that, in some ways, a clearout is a good thing because it will leave a better IFA sector which will increase confidence in the market.

But Kenmir&#39s comments have been called complacent by trade bodies, which say he has not grasped the extent of the problem facing IFAs.

Aifa says Kenmir appears to be assuming IFAs are being underwritten individually when, in reality, most IFAs are being underwritten on industrywide basis, leaving good and bad IFAs unable to find cover.

Until now, the industry has given credit to Kenmir and his team&#39s efforts to resolve the PI crisis, saying it has demonstrated a willingness to tackle the issue head on. Kenmir&#39s claims could lead some to reconsider their views.

LIA head of public affairs John Ellis says: “It shows an astonishing degree of complacency about the situation at a time when it is extremely worrying. I think they certainly do have a crisis on their hands.”

Aifa director general Paul Smee says: “That assumes everyone is being properly underwritten when it appears quite clear that this is not the case. Besides, it is the regulator&#39s job to get rid of bad IFAs, not the PI market&#39s.”

Kenmir says: “If the situation means that bad IFAs have to leave the industry because they cannot get cover, it would lead to more cover available for the good IFAs which would increase confidence in the market.”


Employment law warning to IFAs

Nearly half of IFAs are risking litigation and their businesses by not complying with employment law, according to a survey by law firm Peninsula. The survey showed that 53 per cent of IFAs surveyed were taking short cuts and only 34 per cent were aware of new employment legislation.

Two&#39s company

There can&#39t be many of you out there who don&#39t have the owner/managers of private limited companies as clients. Often, these will include shareholders who are married couples. In some cases, both will be full-time directors as well as shareholders of the business and will spend all their time in the business. In other cases, […]

Opportunities in Japan says Pictet

Investment opportunities in Japan for those prepared to searchits depressing macro-economic climate could turn out to be a gold mine according Pictet Asset Management.Pictet Asset Management head of Japanese equities Richard Heelis, says that despite a 20 year low in equities &#39there&#39s nothing quite like a weak market to stimulate a positive response&#39. He underlines […]

Taxation of policyholders of UK policies

Tucked away in Inland Revenue Press Release REV BN 25 which deals with the taxation of Life Insurance Companies is the following statement: “The Government is also making changes to the rate of corporation tax on the policy holders&#39 share of a life company&#39s profits. The rate of tax on all policy holders&#39 income and […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment