FSA to allow higher excess levels on indemnity cover

Professional Adviser
clock

The FSA has modified Professional Indemnity cover regulations to allow the current rules on excess l...

The FSA has modified Professional Indemnity cover regulations to allow the current rules on excess levels to be varied on a firm-by-firm basis. The regulations currently stipulate excess levels can be no more than the higher of £5,000 or 3% of relevant company earnings. But to help intermediaries struggling to cope with rising premium levels for PI cover, the FSA is willing to tolerate higher excess levels in some cases. It will only accept such cover if it satisfies itself the intermediary's capital adequacy, financial position and past complaints do not suggest the its business poses...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on uncategorised

Building Society-owned Newcastle Financial Advisers acquires Openwork firm

First of a number of acquisitions

Hannah Godfrey
clock 09 December 2019 • 1 min read

Bond managers fear hedges being undermined as liquidity dries up

The recent sell off in the bond market and growing liquidity issues have forced bond investors to use similar hedging techniques, undermining their effectiveness and causing concerns about how much downside protection funds really have.

Anna Fedorova
clock 03 July 2013 •

Police launch investigation into mortgage middleman fined £1m

West Midlands Police have launched a fraud investigation into a Birmingham financier over his role in sale and rent back agreements.

clock 25 June 2013 •