FCA advice market data reveals 2018 PI costs; advisers take £3.5bn in fees

The FCA's data, which it collects every year from around 12,000 intermediary firms, revealed advice businesses that made less than £100,000 in annual revenue in 2018, which are likely to be 'one-man' bands, paid £2,347 on average on PI cover. As the following table shows, this amounted to 4% of their regulated revenue. PII premiums paid by financial adviser firms While PI premiums stretched the budgets of advice firms - 2018 was the year before the Financial Ombudsman Service compensation limit increased - the FCA revealed more than 96% of firms that have 50 advisers or less made a...