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LIA in plea for blanket waiver as PI insurers shun sector

The LIA is calling for the FSA to extend a blanket professional indemnity insurance waiver to all IFA firms with annual turnovers below £500,000 until it reaches a long-term solution to the PI crisis.

Head of public affairs John Ellis says that he has seen evidence from LIA members that PI insurers are not willing to offer any cover to firms unless their turnover is over £500,000.

He warns that unless the FSA takes action soon, a “fairly significant number of IFA firms will bite the dust”.

In the LIA&#39s response to CP169, in which the FSA published proposals to alleviate the PI situation, Ellis says it appears that in many cases the regulator is asking for firms to do the impossible and find cover when the onus should be on the FSA to prove that cover actually exists.

Ellis says: “There is evidence that PI insurers are not prepared to insure firms with half a million turnover or less. Instead of this business of everyone applying for a waiver individually, the FSA should extend a waiver to all of the firms in this category until it finds a long-term solution.”

FSA spokeswoman Louise Buckley says: “A general waiver would mean that IFAs would be less likely to be able to meet claims against them which is hardly going to protect consumers and would not be fair to those IFAs who have obtained cover.”


Portals in a storm on IFA user figures

A row has broken out between intermediary portals, with AssureWeb claiming to have recorded its best-ever month in terms of active users and suggesting that IFAs could be switching from The Exchange.The Exchange has immediately hit back, saying an increase in the number of active users on AssureWeb does not mean it has experienced a […]

Norwich Union investors prosper through bond

Norwich Union has established the Prosper income bond, a guaranteed equity bond that offers investors the choice between income and growth over a five-year term. The bond is linked to the FTSE 100 index and investors can choose to take income of 5.5 per cent a year, 0.44 per cent a month or 29.6 per […]

Royal Liver set for £17m deal to buy Park Row

Friendly society Royal Liver is poised to snap up IFA group Park Row for £16.7m in a deal that moves the society firmly into the IFA arena.Park Row will keep its own name and operate as a stand-alone business, continuing to offer a multi-platform distribution model.Royal Liver says it has struck the deal to expand […]

Lambeth lets the loan take the strain

Lambeth Building Society is opening its first mortgage shop at the world&#39s busiest railway junction.Its Clapham Junction branch will be open for longer hours than its normal branch operating times, closing at 7pm on weekdays.On Saturdays, potential borrowers can make appointments until late afternoon as the branch will operate flexible hours which it says will […]


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