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PI is still crumbling

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&#39s 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&#39s job more difficult.

Gary Dixon

Managing Director,

Compliance Solutions,



M&G Investments – M&G UK Growth Portfolio

Monday, 3 February 2003 Type: Oeic Aim: Growth by investing in UK equities Minimum investment: Lump sum £1,000, monthly £100 Investment split: UK equities 98.7%, cash 1.3% Isa link: Yes Pep transfers: Yes Charges: Initial 4%, annual 1.5% Special offer: 1% discount on initial charge Offer period: Until April 5, 2003 Commission: Initial 3%, renewal […]

Product matters

Royal Bank of Scotland&#39s relaunch of Virgin One as The One Account is a missed opportunity. It includes a few helpful criteria changes but this tinkering does not address the main defects. The previous compulsory requirement of having one&#39s income credited to the account has sensibly been dropped although in practice Virgin One had already […]

Split-cap charity to help investors

The AITC is setting up a charitable foundation it hopes will raise millions of pounds to provide financial support to victims of the split-capital investment trust fiasco. Announced by director general Daniel Godfrey at the AITC conference for directors in London this week, the foundation is seeking to establish a hardship fund for investors who […]

Treasury publishes long awaited Sandler consultation

The Treasury has published its long awaited consultation on the make-up of the Sandler suite of products, setting out the specifications for the products. The suite will include an equity based product, a with-profits product and a pensions product although the Treasury says there is a case for including other products within the suite. The […]

Trouble ahead - thumbnail

Pensions: trouble ahead?

The pace of change in the pension’s space has been little short of astonishing, and has left thousands of employers struggling to keep their pension policy compliant, and also on the right side of current best practice and governance. Many employers, and indeed many in the pensions industry itself, would like to see a period of no change during the next term of government. This would give all sides a chance to catch up and draw breath. 


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