FCA plans set to make firms think twice before advising outside PII

Provider contribution idea welcomed

Hannah Godfrey
clock • 4 min read

The regulator's plans for advice firms to hold cash reserves if conducting business outside their professional indemnity insurance (PII) cover will push firms to evaluate which products they use, advisers have said.

Informed Choice managing director and IFA Martin Bamford said the proposal from the Financial Conduct Authority (FCA) could act as a disincentive against recommending non-standard products not covered by PII. "I don't think people would get involved in selling products that are not covered by PII if they knew they had to put extra capital aside," he said. "Part of me isn't a huge fan of the idea, though, because we already have PI insurance, capital adequacy and the FSCS [Financial Services Compensation Scheme]. To create a fourth layer feels like an unnecessary cost - and that cost a...

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

Compliance relics: The case against PDFs and screenshots

Compliance relics: The case against PDFs and screenshots

'Partial records or flattened archives are no longer sufficient'

David Clee
clock 09 July 2025 • 5 min read
FCA data request prompts SimplyBiz's sector-wide compliance session

FCA data request prompts SimplyBiz's sector-wide compliance session

Nearly 600 advisers sign up for July webinar on navigating new s165 data requirements

Sahar Nazir
clock 09 July 2025 • 2 min read
FCA data information request: Four focus areas for advisers

FCA data information request: Four focus areas for advisers

‘Data is not just a compliance tool it’s a strategic asset’

Chris Davies
clock 07 July 2025 • 5 min read