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PI insurer to match higher FOS limit, except on DB transfers

Insurer Liberty Speciality Markets says it will meet the higher Financial Ombudsman Service limit, but not for defined benefit transfers.

On 8 March the FCA confirmed in a policy statement that it would increase the compensation limit from the current £150,000 to £350,000 from 1 April.

In an update Liberty notes a gap emerged in cover between when the policy statement was released and the implementation date of the higher limit.

A statement given to Money Marketing says Liberty has requested clarification on the changes and has scheduled a meeting with both FCA and FOS.

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It also says it will be in a position to assess any required alterations to insurance policies after this.

But the statement adds the amended cover will not apply to any DB pension transfers transacted after the 1 April, which will need to be underwritten on an individual basis.

Yesterday Money Marketing reported firms have five days to report any professional indemnity insurance polices that are not compliant with the new FOS award limit to the FCA.

There has been a backlash from advisers who say they cannot renegotiate their insurance contracts in such a short time.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. I will be making a formal complaint about the mishandling of this and would suggest all other affected advisers do to. Note the date of my actual verbal complaint to the FCA was BEFORE you all received your emails as I had already identified this as an issue and if a 2 adviser firm can see it one has to ask are the FCA just plain incompetent or is their aim to destroy the directly regulated part of the market and give a shoe in to their mates at SJP and the resurgent banks?

    Dear Mr Castle,

    Thank you for your email of 29 March 2019 which was passed to the Complaints Team.

    Should you remain dissatisfied with the actions or inaction of the FCA you can raise this as a formal complaint. If this is something you want to pursue please fill out one of our complaint forms which can be found here. This will enable us to fully understand any allegations raised against the FCA and decide whether this is something we can investigate under the Complaints Scheme.

    Further information on how we handle complaints can be found on our website here – https://www.fca.org.uk/about/complain-about-regulators.

    We look forward to hearing from you.

    Yours sincerely

    FCA Complaints Team
    Corporate Services

    12 Endeavour Square
    London
    E20 1JN

    Tel: +44 (0)20 7066 9870
    http://www.fca.org.uk

    • Oh and if it is the latter, then that is actually a criminal offence under the bribery act and is why this should NOT be an internal investigation by the FCA, but a forensic review by the Police of minuted meetings by the FCA staff involved (not that the minuted meetings are a true reflection of what happens in them as I have recordings of meetings with them that differ from the minuted meetings.

  2. I have just had confirmation of new compliant cover for our renewal date next week with AXA via AON. Premium is approx 130% of what I was quoted with Liberty, but it is compliant which is the important thing.
    No thanks to the FCA and no thanks to them for any discussion about potential solutions so I WILL be making a formal complaint about the FCA on this as it is NOT maintaining efficient markets and it ££cked up the first 4 days of my family holiday.
    MUPPETTS

  3. “Muppets” is very polite.

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