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Product FSA wants provider aid to create PI scheme

The FSA is willing to work with IFAs to create a mutually run professional indemnity insurance scheme but has warned that it will not happen without the support of product providers.

Director of investment firms David Kenmir told Money Marketing that the regulator would be more than willing to work tow-ards the creation of a fund, saying it could go a long way to create more capacity in the PI market.

But he says that without cash or guarantees from providers, the scheme would be a non-starter. He says it is in the best interests of IFA providers to ensure the continuance of an independent sector.

Kenmir says one possible way for a self-funded scheme to operate could be as a means to provide additional cover on top of a base policy from insurers.

He also concedes that, with the presence of the Financial Ombudsman Scheme and the Financial Services Compensation Scheme, there is less of a need for mandatory PI cover.

He says: “We would almost certainly help the industry with the creation of a self-funded scheme but in my mind it would need some form of support from product providers such as cash or guarantees.”

Clerical Medical pensions strategy manager Nigel Stammers says: “As a supporter of IFA distribution, we would not want to see IFAs go out of business because of a lack of PI. If we needed to, we would pay.”


FRS17 standard deferred until 2005

The Accounting Standards Board has deferred the adoption of new pensions accounting standard FRS17 for two years. The standard for company pension schemes will not become mandatory until 2005.

Penrose Inquiry explains delays

The secretary to the Penrose Inquiry has responded to accusations of slow progress by issuing an open letter explaining the complexity of the case.The vast majority of the documents relevant to Lord Penrose&#39s Inquiry into Equitable Life have now been processed by the inquiry team and the interviewing of witnesses has now started, according to […]

Euro fund firms told to keep it simple

European investment managers should stop churning out new products and concentrate on investors&#39 needs, says PricewaterhouseCoopers. The report says if fund managers want to attract business from the 80 per cent of European households without fund holdings, they should offer simple savings solutions rather than launch new products into a saturated market. To serve investors […]

1.5 million switch current accounts

Streamlined procedures for switching current accounts have lead to more than 1.5 million people moving banks in the last year, says research from ICM for Intelligent Finance.The research shows a further 3 million people intend to move in the coming year, while 8 out of 10 of those who moved last year said they found […]


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