FSA abandons proposals for exemptions from PII

Professional Adviser
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forthcoming Eu directive means all IFA firms will have to have cover in place

The FSA has scrapped proposals to allow intermediaries with turnover of £10m or more to go without professional indemnity insurance (PII). In its latest consultation paper, CP193, released last week, the FSA said exemptions based on turnover or capital resources, as proposed in the earlier CP169, would be in breach of the EU's Insurance Mediation Directive (IMD), with which FSA regulations must be in accord when it comes into law in January 2005. The IMD requires insurance and reinsurance intermediaries, which the FSA said includes the majority of personal investment firms, to have PII....

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