A third of IFA firms could be left without PI cover, should the new Financial Services Bill fail to include a long-stop, according to figures from the Association of Independent Financial Advisers (AIFA).
The research, from the NMG IFA Census commissioned by AIFA and Zurich's ‘Fair Liability 4 Advice' campaign, found nearly half (44%) of 279 advisers polled would like Professional Indemnity Insurance (PII) run-off cover, but are unable to afford it. A further third (30%) have been rejected for PII cover. AIFA policy director Chris Hannant said despite falling complaints against the IFA sector, PI costs were continuing to rise. "It is extremely positive that complaints against advisers continue to fall and shows advisers are looking after their clients. The regulator needs to recogni...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
