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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.


Standard Life cuts bonuses

Standard Life has again cut its bonuses, reducing payouts by an average of 6 per cent.This means a £50 a month 25-year with-profits endowment policy, is now worth £69,386 down from £75, 984. This represents an annual return of 10.7 per cent on total premiums of £15,000. There is to be no change to annual […]

Magian could hit IFAs with charge of up to £3,000

IFAs applying for professional indemnity insurance from Magian Mutual could find themselves hit with an upfront charge of up to £3,000 before Magian decides if it will offer them cover.Magian claims that the fee is currently only charged to a minority of applicants which are undergoing risk assessments because of the nature of their business […]

Technology the way to cut admin time – survey

Eighty per cent of IFAs spend less than 35 per cent of their time actually advising clients, according to research from 1st Software. The survey shows 55 per cent of advisers see improved use of technology as the most effective way for advisers to be able to spend more time with clients, with 36 per […]

Life offices have power to end cap

Why is Nick Bamford wasting his time calling on Howard Davies to use his final months as chief executive of the FSA to push the Treasury to drop the price capping and filtered questions from the Sandler proposals? We already know that:1: Howard Davies does not think either is a good idea(he has already said […]

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