NATIONAL NEWSPAPERS have picked up on the pending threat to financial advisers of new professional indemnity insurance rules, once the Insurance Mediation Directive comes into force next January.
The Daily Telegraph reports intermediaries must hold PII cover worth at least €1.5m a year for all claims, and €1m for single claims. At present, there are thought to be 185 out of 4,500 adviser firms which have selected the FSA’s option of setting aside sufficient funds to cover mis-selling rather than struggle to find PI cover. However, the directive must be complied with, the FSA is quoted as saying the regulator will have to force the rules and close firms down which do not comply. A spokesman for the FSA said: "Because we have to comply . . . firms have to get PII, or a compar...
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