View more on these topics

Mattioli Woods in £400,000 dispute with PI insurers

Pensions and wealth management business Mattioli Woods is in a legal battle with its professional indemnity insurers over £400,000 worth of potential claims about advice it has given.

In its preliminary results for the six months to 30 November, published this week, the firm says its PI insurers are refusing to indemnify the firm for the claims, which relate to the period from 18 February 2010 to 17 August 2011.

Its results state: “The group is of the opinion that the insurers’ position is without any merit and is challenging their view.

“The estimated compensation payable should the clients’ claims be successful, with no indemnity provided by the insurers, is £400,000.

“To the extent that the group believes it is possible but not probable that a claim will succeed and result in an economic outflow, no provision is made in these financial statements.”

The firm has increased its pre-tax profits 26 per cent to £2.5m, up from £2m in the six months to 31 May.

Its revenues increased 29 per cent to £11.3m, up from £8.7m, as its client assets grew 13 per cent from £2.9bn to £3.24bn.

Syndaxi Chartered Financial Planners managing director Robert Reid says: “While PI insurance is meant to protect you there is always a chance you have done something in a particular way that invalidates it or someone sees a liability where you do not.”

Recommended

Platform Index

How advisers use wraps and platforms

The big three platforms continue to dominate, but a closer look at the data shows the way that advisers use platforms is changing

25

BBC’s Money Box reignites trail commission debate

Trail commission has come under the spotlight again following a BBC Money Box programme which reignited the debate over whether advisers are justified in receiving ongoing commission for pre-RDR business without offering an ongoing service. The Radio 4 broadcast at the weekend featured a listener called Michael, who had around £90,000 in investments dating back […]

The Ideas Lab to run risk roadshows

The Ideas Lab is holding a series of free roadshows with a number of investment houses as it aims to help advisers manage risk within their businesses. The firm will hold six events throughout February, with each event lasting around two hours. The locations are Bristol, Birmingham, Leeds, Manchester, Glasgow and London. The Ideas Lab […]

Guide front cover - thumbnail

Guide: how to… audit your auto-enrolment scheme compliance

As the Pensions Regulator starts to bare its teeth and the changes mentioned in the Budget and Queen’s Speech start to come into force, it is essential that you understand your scheme and the processes you need to undertake to ensure it remains compliant. Our second re-enrolment guide looks at how to audit the key areas of your auto-enrolment scheme.

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