FCA says lack of proper PI cover places 'unfair' burden on FSCS and firms

Dear CEO letter sent today

Sophie King
clock • 2 min read

The Financial Conduct Authority (FCA) has said the inability for firms to compensate consumers via their professional indemnity insurance is “unfair".

In a ‘Dear CEO' letter published on Tuesday (21 January), addressed from FCA director of life insurance and financial advice supervision Debbie Gupta, she said the transfer of these compensation costs to other market participants via the Financial Services Compensation Scheme (FSCS) levy places an unnecessary burden on other firms. "It also threatens confidence and participation in financial services market," she added. She said the FCA was concerned some advisers were holding "inadequate" financial resources and professional indemnity insurance (PII) for the business activities they car...

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 Your profession

Why advisers shouldn't rush into private markets

Why advisers shouldn't rush into private markets

'There's only so long the hamster wheel can keep turning'

Justin Cash
clock 15 December 2025 • 4 min read
Adviser workload set to rocket ahead of IHT on pensions changes

Adviser workload set to rocket ahead of IHT on pensions changes

Large volumes of clients will need reviews of financial plans

Isabel Baxter
clock 15 December 2025 • 3 min read
Advising silver splitters: Legal insight for older clients getting a divorce

Advising silver splitters: Legal insight for older clients getting a divorce

Why is divorce becoming more common in older clients?

Katharine Bundell
clock 15 December 2025 • 4 min read