View more on these topics

PFS secures up to 20% discount on PI cover for chartered firms

Chief executive Keith Richards says regulatory dividends are starting to emerge.

The Personal Finance Society has secured a discount of up to 20 per cent on professional indemnity insurance cover for chartered firms.

The deal, agreed through PII broker Howden Windsor, may also extend to additional cover features such as legal liability wording and an extended reporting period.

Speaking to Money Marketing about the deal last week, PFS chief executive Keith Richards said these kind of discounts could be seen as the start of regulatory dividends emerging, where more professional firms are rewarded with lower costs.

Richards said: “Insurers are recognising that increased qualifications of professionalism should lead to lower risk, and they are going to reflect that in premiums.

“You could say this marks the early signs of professional dividends. So although there has been a cost to advisers to achieve higher standards in the run-up to the RDR, it is encouraging to see early signs of recognition.”

Richards added that given the increased professionalism and greater transparency under the RDR,  these should in time lead to “less intrusive regulation and, as a direct result, a reduction in regulatory costs”.

Howden Windsor director Neil Pointon says: “We have been working with the PFS for some time to help advisers understand the important considerations they should make when buying PI insurance.

“All too often price is the driver, but the policy wordings vary enormously. Not only have we worked hard to ensure that these policies have the most comprehensive coverage but we have secured a significant discount for chartered firms too.”

In April the PFS and Howden Windsor published a guide to buying PI cover for advisers, which covered areas such as what insurers are looking for, features to be aware of, the importance of notifying insurers of potential claims, and run-off cover.

Recommended

Tom-McPhail-MM-Peach-700.jpg
4

Tom McPhail: Why Pica’s new directory matters

More value is lost from the pension system at the point of retirement than at any other stage of the retirement saving journey. For years, investors have been buying poor value and inappropriate annuities. This is because they have not enjoyed the benefit of having an intermediary help them to shop around the market and […]

David-Tiller-front-at-Platforum-event-in-2013.jpg

Standard Life launches review of its fund supermarkets

Standard Life is reviewing its FundZone and Sigma fund supermarkets to see how it can introduce more flexible wrap capabilities if they are needed.  The first changes will affect the bundled Sigma fund supermarket, traditionally used to access Standard Life Investments funds. Standard says in Q1 next year, the 4 per cent of Sigma users invested in funds managed […]

Julie-Patterson-MM-Peach-700.jpg
1

IMA: EU regulations are heading in different directions

Two pieces of European legislation relating to sales practices – specifically “inducements” for financial advisers (or trail commissions) and their disclosure – are heading in different directions. Known as the Markets in Financial Instruments Directive and the Insurance Mediation Directive, they respectively deal with marketing of banking products and funds, and of insurance products. The […]

Thumbnail

Neptune video: UK economy: a sustainable recovery?

After years of a slowly brewing economic recovery, the UK has seen a strong rise in growth in recent months. Mark Martin, manager of the Neptune UK Mid Cap Fund, discusses the strength of this recovery and whether it is sustainable.

In the video, Martin addresses the following:

• Structural features supporting the UK economy
• UK mid-caps and the potential for M&A activity
• Valuations and opportunities in house builders

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment