Under the terms of the deal, accredited firms recognised by the Institute of Financial Planning will have access to full legal liability, fraud cover, costs of legal representation and automatic inclusion of any newly created or acquired businesses.
The scheme of recognising accredited financial planning firms is part of the Question of Trust campaign, launched by IFA Shane Mullins, director of Nottingham-based Fiscal Engineers with FTAdviser sister publication Financial Adviser last year, in association with charities and industry bodies including the IFP.
Nick Cann, chief executive of the IFP, said: “As the financial advice market segments again, it is important that insurers and others recognise the positive qualities of accredited financial planning firms and that it is possible to deliver services matching their specific requirements.
“It is great news that at last, and in difficult conditions, an underwriter has been able to deliver a PI insurance scheme that relates directly to this robust business model.”
Yesterday (1 October), the IFP elected Richard Allum to its board of directors, the first paraplanner to take such a position.