Some financial advisers still do not have full professional indemnity (PI) cover following the increase to the maximum compensation award that can be offered by the FOS, PA understands.
The Financial Ombudsman Service (FOS) compensation award limit rose from £150,000 to £350,000 on 1 April - nearly three months ago - making some PI policies invalid. A few days before the FOS award increase, the Financial Conduct Authority (FCA) said firms without compliant cover should complete an online form within five working days to notify the FCA and let it know when the firm intended to obtain valid insurance. The financial watchdog said it was willing to allow firms that followed its instructions time to obtain different PI cover following the increase. PFS: Our interventi...
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