View more on these topics

PI firms dispute block notification advice

Professional indemnity insurance specialists have warned IFAs to speak to their PI brokers before sending block notifications to their insurers.

Block notifications involve advisers sending a list of clients who may be affected by particular circumstances to their insurer before complaints arise.

Law firm Regulatory Legal partner Gareth Fatchett, who is offering a block notification service to IFAs, says where situations arise, such as the collapse of Lehman, advisers are obliged to notify their insurer of any clients they have in Lehman-backed structured products.

Fatchett says: “This is not discretionary, IFAs must block-notify their insurer of any circumstance that may lead to complaints, otherwise claims that arise will not be covered by their insurance.”

But Collegiate underwriting director Richard Turnbull says he has seen a marked increase in claim management and legal firms contacting IFAs about block notifications in the past few weeks and warns IFAs should not contact their insurer before speaking to their PI broker. He says:

Rather than pay a lawyer for advice over block notifications, take advice from an insurance professional. If you don’t, you could jeopardise your cover.”

PYV chief executive Neil Pointon says: “IFAs should first speak to their broker about any problems so they do not jeopardise their policy or renewal at a later date.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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