PI isn't working for advisers - FCA's Andrew Bailey

Addressing the Association of British Insurers' (ABI) annual conference this morning, the FCA chief called on the insurance industry to try and help solve the problem of financial advisers stumping up substantial costs to maintain the Financial Services Compensation Scheme (FSCS). Bailey (pictured) argued the ‘front-stop' for advisers should be PI cover - as it is for lawyers and other professions - but explained this is typically not the case. "The contracts are framed often in ways that rule out loss absorption in the context we are dealing with here when the firm fails," he said. "W...