FSA warns PII providers on dodging Arch Cru claims

clock

The Financial Services Authority (FSA) has warned professional indemnity insurance (PII) providers against excluding cover for Arch Cru claims when renewing independent financial advisers' (IFAs') policies.

Attention has turned to the PII cover firms hold following the launch of a consultation on setting up a £110m redress scheme for Arch Cru investors. That scheme, if approved, would see all advisers who sold the funds forced to review their recommendations and, where mis-sales are discovered, compensate the customers affected. The FSA estimates hundreds of firms will have to pay compensation and that several will go out of business. In a ‘Dear CEO' letter sent to PII providers last week, the regulator addressed concerns it has received from advisers about the possibility of Arch Cru...

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

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA set to raise market abuse penalties and bring crypto into scope

FCA set to raise market abuse penalties and bring crypto into scope

Minimum fine raised

clock 16 June 2026 • 2 min read
Director jailed for near £9m investment fraud

Director jailed for near £9m investment fraud

Declan Nowell sentenced for ‘Ponzi-style’ investment scam

Sophia Panayi
clock 01 June 2026 • 2 min read
Proposed simplified advice rules unlikely to help service new clients, advisers say

Proposed simplified advice rules unlikely to help service new clients, advisers say

Research from AJ Bell

Sophia Panayi
clock 01 June 2026 • 1 min read