View more on these topics

Mifid poses PI passport problems

Advisers looking to passport into Europe under Mifid need to act quickly to ensure they get the correct professional indemnity insurance requirements, says PYV.

The specialist insurance broker says due to the current soft market conditions and the November implementation date for the European Union directive, advisers should already have in mind how they will comply with the more rigorous requirements for professional indemnity requirements.

Firms will need a 50 per cent increase in the current Insurance Mediation Directive minimum professional indemnity cover limit or can alternatively increase capital adequacy.

PYV says that companies which handle client money will also have to comply with the requirements although they are likely to hold enough capital to trade off the need for extra professional indemnity insurance.

Current projections suggest that only a small number of advisers will initially take advantage of the new passport freedoms but PYV says those advisers that do should be looking for appropriate cover as new 12-month contracts will take them over the November 2007 threshold.

PYV chief executive Neil Pointon says: “Any firm considering holding client money or applying to be able to passport into Europe, come November this year, should contact their PI broker now to discuss coverage and cost implications.

“Due to the current soft market conditions, in certain cases, it may now be possible to increase the present minimum limit of indemnity by the necessary 50 per cent for a relatively modest additional premium which IFAs may find better value than choosing the capital adequacy route or leaving it closer to the time.”

Recommended

Poison attacking industry

Regulation of financial services was introduced in this country in 1986. The remit of the regulators was to protect the consumer and what a brilliant job they have done. Today, a once thriving and successful financial services industry has all but been brought to its knees. The policy of the regul-ators has been akin to […]

Guidelines fail to end conflict of interest

Draft guidance from The Pensions Regulator will not protect advisers from conflicts of interest when advising on transfer sweeteners, warns IFA Robert Reid.The leaked guidance addresses the growing practice of employers offering cash inducements to employees to persuade them to leave defined-benefit pension schemes.Syndaxi Financial Planning managing director Reid says it stresses the need for […]

Thames River to cap fund at 250m

Thames River Capital will close its 230m property income and growth fund to new investors when it reaches 250m.Managing director Charlie Porter says the fund has a 500m capacity and was always intended to be closed when it reached half of this.He says: “We are not an institutional juggernaut. Running a property fund at 250m […]

Survey shows IFAs look for strength

Over half of IFAs would reject a financial product if they thought the provider was not financially strong enough to provide support.Research from MetLife aimed to find what advisers are looking for from product providers entering the investment and retirement planning market.Fifty-four per cent say they disregard certain products because they believe the provider is […]

The Great British Break-Off

Despite predictions that a vote to leave the European Union would result in an economic apocalypse, UK equities have shown the market equivalent of a stiff upper lip: bouncing back, keeping calm, and carrying on. Although the road towards Brexit remains clouded in uncertainty, UK equities offer a range of opportunities to investors seeking returns […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment