PII *** 45% of firms must double cover

The FSA's own cost-benefit analysis of proposals in CP193 conclude that 45% of 4,000 personal investment firms estimated to be affected will have to double their aggregate cover by £500,000. This applies to firms defined as "very small" because of "relevant income" of £166,000 or less per annum. The average premium cost increase per financial adviser will be £561 among these "very small" firms, the FSA says, resulting in an industry cost of more than £2m just to keep up with the minimum levels of indemnity required under the new rules. The cost to all 4,000 firms of all...