Independent Financial Advisors Insurance
We have many years’ experience which helps us to understand the insurance requirements of Independent Financial Advisors
We truly understand the turbulence of the Professional Indemnity Insurance market for independent financial advisors in recent years. Insurance premiums have been very changeable and insurer appetite has been reducing year on year with many Insurers pulling away from the professions completely.
PI cover as part of Independent Financial Advisers Insurance has been a mandatory purchase since 1994 when under the regulation of the Personal Investment Authority.
Now the profession is regulated by the Financial Conduct Authority (FCA) who stipulate minimum levels of required coverage that must be purchased, however the minimum level required may not always be suitable for the company’s needs.
Now the profession is regulated by the Financial Conduct Authority (FCA) who stipulate minimum levels of required coverage that must be purchased, however the minimum level required may not always be suitable for the company’s needs. Currently, the minimum levels are:
It’s also important for firms to ensure that they have:
On 1st April 2019, the FOS award limit increased from £150,000 to £350,000. Following this, the Chartered Institute for Securities & Investment warned the FCA that there may be unintended consequences for its SME members.
IFAs have an increased exposure with the potential for high severity claims which is why it’s essential to invest in the correct insurance policy for your business. Below are some commonly accepted views on professional activities:
Lloyd’s is proposing to transfer certain EEA insurance policies to Lloyd’s Brussels. The proposed transfer will not change terms and conditions of any policy, except that Lloyd’s Brussels will become the insurer and Data Controller in respect of the transferred policies.
Further information about the proposal (including whether it could affect your pre-transfer position), which policies are transferring, your rights and what you need to do can be found at www.lloyds.com/brexittransfer