I read with interest the article by Junior Sobowale (Money Marketing, January 23).While I agree with some of the general points he put forward, I was astounded to read his observations about the professional indemnity difficulties being experienced by IFAs.
These comments exhibit a total detachment from the plight that is being felt currently by large numbers of IFAs. While more capacity may be forthcoming, there is certainly no indication of that now and, if anything, it is getting worse.
Over the last two months there has been a marked deterioration in the PI market overall. The IFAs I know who have seen premiums double or triple are the lucky ones.
In January alone, I have seen several who cannot even get a quote and have been left high and dry by underwriters.
Looking to a possible improvement in the market later this year is scant recompense for those IFAs (and there must surely be hundreds by this time) who are without cover today.
I wait with bated breath for the FSA's impending consultation paper to address the PI issues but have huge sympathy for the IFAs out there with clean compliance histories that might well be suspended from trading through the vagaries of the PI market.
At present, even those lucky enough to receive an offer of affordable PI cover are still likely to find it non-compliant with the FSA requirements.
Events have taken an unfortunate turn and, again, it is the IFA that suffers. I would not make light of the PI position as it is another very worrying development that makes the IFA's job more difficult.