PI warning on platforms due diligence

Scott Sinclair
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Advisers are concerned they will be unable to demonstrate initial and ongoing due diligence when recommending platforms to clients, research suggests.

A survey of more than 200 adviser firms by Capita Financial Software found only 20% said they were ‘very confident' of being able to prove they had carried out in-depth research for professional indemnity insurance (PII) purposes. Capita says PII policies may be invalidated and premiums dramatically rise for those advisers who cannot evidence proper initial and ongoing due diligence. "The results show that the legal and, in particular, due diligence aspects of using platforms with clients are still causing great concern for a significant number of firms," Capita business development d...

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