View more on these topics

PI in the sky as IFA&#39s premiums rocket by 650%

A Brighton IFA has been hit with a 650 per cent rise in its professional indemnity insurance despite having minimal exposure to potential endowment or split-cap misselling claims.

SR Financial Management submitted a PI renewal form to insurer St Paul several weeks ago, expecting to receive a quote roughly comparable to the £5,040 it paid for £1m worth of cover with the same company last year.

But it was stunned at the end of September to find that St Paul was demanding £38,235 to renew its insurance, with a policy excess 15 times higher than the £1,000 it was previously subject to.

SR director of development Tony Travis says he rang the underwriter to query the premium and was informed SR was only offered reinsurance because it is low-risk, with little or no exposure to split-caps, structured products and drawdown.

He says: “St Paul said we were lucky to get insured at all but it is nothing short of extortion. Some IFAs cannot pay these premiums and will throw their hands up and quit the industry. I find it totally mind-blowing.”

St Paul marketing manager Peter Elliott says: “The misselling issues just are not going away. The pre-miums of many pay for the losses of a few.”

•Have you have had a PI nightmare? Tell Money Marketing&#39s Rebecca Barr about it on 0207 943 8043


Britannia expands mortgage range

Britannia Building Society is adding three new products to its mortgage range.The new products include a first-time buyers loan, a five-year fix and a 10-year fix, all of which Britannia claims to be highly competitive with no extended penalties.The FTB loan offers a fixed rate of 3.99 per cent up to 75 per cent loan […]

Correspondent&#39s week

“I am employed, I am employed. I have a boss, I have a boss.” It&#39s my new mantra and something I must once again work hard to place at the centre of my working life. It&#39s Monday morning, week two as head of communications at Park Row Group.Having run the Pretty Technical Partnership for the […]

A date with destiny for bond values

It is probably fair to say that most advisers would claim to have a pretty good grasp of the taxation regime that applies to single-premium bonds. After all, it has been around for many years and the concept of 5 per cent tax-deferred withdrawals, top-slicing relief and the impact of withdrawals in excess of 5 […]

Online mortgages from Abbey Nat&#39s Cahoot offshoot

Abbey National&#39s internet bank Cahoot is to offer mortgages online for the first time from this week alongside its existing range of products, including credit cards, bank accounts and unsecured personal loans.Abbey claims that as Cahoot is a low-cost distribution channel, the move to sell mortgages is in line with its aim of giving customers […]

Inheritance Tax, a tax on the wealthy? Urban myth or fact?

By Kim Jarvis, Technical Manager with Canada Life’s ican Technical Services Team. Inheritance tax has been around in some form since 1796. Estate duty dates back to 1894 and over the years this tax has evolved into the inheritance tax (IHT) we know and love today, which was introduced in 1986 as a replacement for […]


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