Advisers are continuing to be hit with exorbitant professional indemnity (PI) insurance premiums, with increases up to £90,000 year-on-year pricing firms out of the defined benefit (DB) transfer market.
The PFS has heard from advisers who are struggling to afford PI insurance since the Financial Conduct Authority (FCA) lifted the Financial Ombudsman Service (FOS) compensation limit from £150,000 to £350,000 in April last year. The premium rises particularly impact those who work with defined (DB) transfers, as they are considered high risk activity. The professional body also said advisers are finding it increasingly difficult to obtain PI cover due to a shrinking number of providers being unable to cope with high volumes of applications. One advice firm told the PFS they went fro...
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