The FSA is proposing to scrap previously proposed exemption provisions, such that all firms, regardl...
The FSA is proposing to scrap previously proposed exemption provisions, such that all firms, regardless of size, will have to obtain PII cover.
Cover will be required regardless of whether or not a firm's business falls within the scope of the EU's Insurance Mediation Directive.
The question of whether firms with turnover above £10m should be exempt from PII requirements was first put in CP169.
Despite a positive response, the FSA now says that there are no provisions in the IMD to exempt firms falling within the scope of the Directive from PII requirements based on turnover or capital resources.
However, the regulator says too that it might have to change its mind on this again because of proposed amendments to the Investment Services Directive, which have yet to be passed into law.
In the meantime, companies have been given the following notice of the minimum limits of indemnity that they must insure against:
|Relevant income (£)||Minimum limit of indemnity (£)|
|More than||Up to|
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till