PFS calls for PI relief during Covid-19 pandemic

The professional body has written to the regulator and the government to request the temporary measure, which it said will ease pressure on advisers.

It has asked the treasury to act as a reinsurer of last resort for cover for financial advice firms.

PFS chief executive Keith Richards (pictured) said: "While we acknowledge the FCA and treasury have a list of urgent priorities at present, the challenges being faced by advice firms with pending professional indemnity insurance renewals and those who have had little option but to accept unacceptable terms or cease trading is leaving the sector and consumers exposed.

"We welcomed the FCA's pragmatic introduction of crisis reaction measures, such as suspending the 10% reporting rule and extension to key deadlines, but the crisis of PII and consequential impact on FSCS remains at odds.

He added: "Advisers across the country are doing a great job supporting their clients in these unprecedented times so it is frustrating to hear from many of them that the ever-present problem for the profession - obtaining affordable, comprehensive professional indemnity insurance - continues."

On Thursday morning (21 May) the Financial Services Compensation Scheme announced its final levy for the 2020/21 financial year would increase by £16m for advisers. 

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