View more on these topics

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.

How can advisers secure the best deal on their PI cover? Register for our live webinar now

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.


Money and umbrella - thumbnail

FCA to grant firms PI flexibility after FOS limit increase

The FCA will consider the individual circumstances for advice firms who cannot get their personal indemnity insurance re-confirmed before the 1 April increase in the maximum compensation limit for Financial Ombudsman Service claims, Money Marketing has been told. Monday will see an increase in the FOS’s limit from £150,000 to £350,000. Confirmation of the changes […]


Does FOS compensation limit hike justify a surge in PI bills?

Change will benefit fewer than 500 consumers, but resulting premiums rise could force small firms to stop providing advice The FCA’s decision to increase the Financial Ombudsman Service’s compensation limit from £150,000 to £350,000 from 1 April continues to receive significant backlash from industry bodies. The knock-on effects will impact the long-awaited evaluation of both […]


FCA must postpone FOS limit increase, says trade body

Adviser trade body Pimfa says insurance companies need more time to establish offer terms reflecting the new Financial Ombudsman Service compensation limit. The new £350,000 ceiling on compensation claims comes into play in less than a week. Pimfa says advice firms cannot be expected to have PI insurance confirmed and the FCA should postpone the […]


Pension confidence low for over 60s despite financial security

A new study by Just Group shows seven in 10 over-60s feel financially well prepared for retirement but also lack confidence about the size of their pensions. Research carried out by Opinium Research on behalf of Just in January 2019 among 4,000 UK adults reveals concerns about meeting future care costs and ability to leave […]

Discretionary will trusts – navigating the first 10 years of exit charges

Discretionary will trusts can be an exceptional estate planning tool, but care needs to be taken when it comes to the charges. Planning is the key here – with the right strategy it’s possible to ensure your clients’ beneficiaries benefit in a tax efficient manner. The initial choice is clear: through their will, clients can […]


News and expert analysis straight to your inbox

Sign up


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 –

    We look forward to hearing from you.

    Yours sincerely

    FCA Complaints Team
    Corporate Services

    12 Endeavour Square
    E20 1JN

    Tel: +44 (0)20 7066 9870

    • 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.

  3. “Muppets” is very polite.

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