Aifa lobbies Brussels for PI waiver

Chris Cummings, director general of Aifa, has visited Brussels to argue for greater flexibility in the professional indemnity (PI) requirements of the Insurance Mediation Directive (IMD), as it imposes PI on IFAs at a much higher level. Under the Financial Services and Markets Act (FSMA) firms can apply for a waiver from the rule requiring them to have PI, but the Financial Services Authority (FSA) will not grant a waiver to firms caught by the IMD. The waiver enables firms to do a trade-off between capital and PI, but there is no such trade-off in the IMD. Cummings is calling on the ...