Increasing the amount of money the Financial Ombudsman Service (FOS) can award for complaints against firms could have significant - and unintended - consequences for financial advisers, Royal London has warned.
Proposals from the Financial Conduct Authority (FCA) would see the award limit increase from £150,000 to £350,000 for complaints about acts or omissions by firms resulting on or after 1 April 2019. Royal London has suggested the proposals could increase the cost of professional indemnity (PI) insurance cover for advisers by £77m. New rules for PI firms 'could see 25% insurance cost rise' It warned there was also a greater chance PI insurance providers might find the extra costs too much to bear - potentially leading them to leave the market and making it harder for advisers to...
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