View more on these topics

Umbrella struggles to raise £1m to go public

Project Umbrella, the proposed captive IFA professional indemnity insurer launched in a blaze of glory in March, has yet to raise the £1m capital it needs to go public.

The scheme, which is aiming to offer PI cover to up to 500 small IFA firms, says it needs to raise £1m to cover capital-adequacy requirements from IFAs looking for cover.

Law firm ProAct Legal, which is the project manager, says it has funding to provide up to £10m to offer cover to firms but is calling on IFAs looking for affordable PI to pay the initial cash to meet the costs of getting the project off the ground.

ProAct plans to write to every firm which expressed initial interest to ask if they would be willing to invest in the scheme and become part-owners in a PI insurer.

Despite initial plans to seek FSA authorisation in May, Project Umbrella has yet to approach the regulator and is hoping to go live in time for the November renewal season.

ProAct Legal partner Gareth Fatchett says: “We are ready at the last stages. It is a matter of raising the capital that is necessary to make it a viable business proposition.

“IFA firms are so shortsighted that they are not willing to put up the cash but will then find themselves without PI cover next year.”


Next in line

Mortgage Next managing director Martin Maynard is laying down a challenge to other companies.He says: “Over the last few months, a number of companies have said they will take principal status under mortgage regulation next year. I am interested to see which of these will actually have the infrastructure in place come M-Day to support […]

Network Data adds Scot Prov to panel

Non-regulated network, Network Data, has announced the addition of protection specialist Scottish Provident to its panel of insurers. Scot Prov becomes the seventh insurer on board and will sit alongside Norwich Union, Royal & Sun Alliance, Zurich, Lloyd&#39s of London, Legal & General and MGM Assurance. Head of operations Terry Young says: “As a principal […]

Bank of Scotland wraps up triple fund deal

Bank of Scotland Investment Service is setting up a wrap account which offers HBOS customers access to funds from Schroders, Newton and UBS Asset Management.The service will be introduced on August 18 and will feature three funds from each of the firms, offering investors access to a range of growth, income and international funds.The bank […]

Outside edge

As the compensation culture bandwagon rolls on, it has been suggested that fund managers should be more proactive in providing redress to investors if there has been a clear case of mismanagement. While a laudable concept, I feel this would open up a massive can of worms.Certainly, if mismanagement involved a fund management group not […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm