The Personal Finance Society calls for PI insurance relief amid pandemic
The Personal Finance Society is urging both the Financial Conduct Authority and HM Treasury to relieve the pressure on advisers seeking professional indemnity insurance in the midst of the coronavirus pandemic.
The professional body has written to the regulator and government urging them to introduce temporary measures to relieve advisers of the pressures they face right now in obtaining affordable, comprehensive professional indemnity insurance cover.
A four-month waiver for advice firms searching for PI insurance has been requested and HM Treasury has been asked to consider acting as reinsurer of last resort for cover for financial advice firms.
These latest calls from the Personal Finance Society come after the professional body renewed their calls for long-term reform of the Financial Services Compensation Scheme levy and the professional indemnity insurance market earlier this year.
Keith Richards, chief executive of the Personal Finance Society, said: “While we acknowledge the FCA and Treasury have a list of urgent priorities at present, the challenges being faced by advice firms with pending professional indemnity insurance renewals and those who have had little option but to accept unacceptable terms or cease trading is leaving the sector and consumers exposed.
“We welcomed the FCA’s pragmatic introduction of crisis reaction measures, such as suspending the 10 per cent reporting rule and extension to key deadlines, but the crisis of PII and consequential impact on FSCS remains at odds.
“Advisers across the country are doing a great job supporting their clients in these unprecedented times so it is frustrating to hear from many of them that the ever-present problem for the profession – obtaining affordable, comprehensive professional indemnity insurance – continues.
“Amid the current crisis, financial advice is more important than ever before and we cannot as a society afford to lose such valuable services, which is why action both short and long-term is required.”
Authored by the Personal Finance Society
The Chartered Insurance Institute (CII), the leading professional body for the global financial services profession, exists to promote higher standards of integrity, technical competence and business capability. With over 115,000 members in more than 150 countries, the CII is the world's largest professional body dedicated to insurance and financial services.
Our membership covers all disciplines within the insurance industry (claims, broking, underwriting), those working in the life and pensions sector, the mortgage advice market and financial advisers (under the Personal Finance Society brand).
Our Royal Charter requires us "to secure and justify the confidence of the public" in our members and in the insurance and financial services sector.
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