Advisers with clients invested in the Arch cru fund range are seeing the cost of their professional indemnity (PI) insurance rise on the back of the products' suspension, the Investors Committee claims.
In a correspondence with IFAs on behalf of the Committee, cru managing director Marc Ainscough also warns some PI insurers are issuing new policy exclusions, ruling out cover for claims relating to Arch cru. The news follows the funds' authorised corporate director Capita decision to stop all charges to investors in the range including IFA trail commission, from 27 July. "PI insurers are issuing exclusions and raising excesses on policies to limit their exposure to claims they expect are on the horizon," says Ainscough. "Lack of information is hindering IFAs' ability to negotiate t...
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