Tenet is to offer directly authorised clients a new professional indemnity scheme with cheaper premiums available to those that purchase more compliance services from the network.
Policies will be individually underwritten on a case-by-case basis and Tenet hopes the scheme will offer more realistic excess levels and more affordable premiums to lower risk firms.
Group regulatory director Mike O’Brien says the scheme should benefit pensions advisers because the cover will have a positive impact on their capital adequacy requirements.
O’Brien says: “At a time when a worrying number of advisers are struggling to obtain satisfactory cover – or indeed any cover at all due to insurers hiking excesses, expanding exclusions to unreasonable levels and increasing premiums exponentially – we have addressed the issue by negotiating preferential terms for Tenet Select customers.”
A statement from Tenet explains that firms that buy more services from Tenet Select will be considered lower risk and eligible for discounts on their premium.
IFA practice head Julian Brincat says: “We have been able to secure these improved terms due to the quality, breadth and reputation of the compliance services provided by the Tenet Group. They reflect the lower risk that these firms will present to the PI insurers.”
Tenet has partnered with Lloyd’s broker Protean Risk on the offering.
The Financial Advice Market Review recommended the FCA look at the PI market after it reviews the Financial Services Compensation Scheme’s funding model. Work on a PI review is expected to start this year.