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PI questions that need answering

Why does the EU believe PI cover for smaller intermediaries has to double in 2005. What committee or committees came to this conclusion? What research found this figure to be acceptable? What interest either for the public or the industry is served?

The questions should be addressed to the European Union first and foremost. If the EU ramparts prove impenetrable, then, at the very least, the FSA should provide an adequate explanation of its view of the EU&#39s thinking.

There is, of course, a possibility that the requirement to double cover currently proposed by the insurance intermediaries directive will be replaced by less onerous proposals in the investment services directive, a move supported by the FSA and Aifa.

But we still want to know the rationale and why the thinking of the FSA, which does not agree with the proposal and which must be more in touch with the market, was not taken into account.

The FSA&#39s other proposed reform allows unlimited PI opt-outs provided the business has the capital to meet any potential claims. To some extent, this is codification of what the FSA has been doing with waivers.

If you have a lot of money in the bank, then to some extent you can be free of the PI requirements but this is still miles away from a permanent solution.

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