FCA warns advisers to update PI insurers on claims

FCA warns advisers to update PI insurers on claims

The Financial Conduct Authority has urged advisers to keep their personal indemnity insurance providers updated about any claims being made against their business.

In a statement published on its website today (March 1) the regulator stated it expected all advice firms to keep insurers in the know about any claims they may be facing through the Financial Ombudsman Service.

The city watchdog also stated advisers were responsible for ensuring they adhered to the terms and conditions of their PII agreement.

Article continues after advert

The FCA issued the caution as it urged any former members of the British Steel Pension Scheme to submit a complaint to the ombudsman if they felt they were unsuitably advised to transfer out of the scheme.

The FCA advised former members of the scheme to first make a complaint directly with the company which provided the advice, and to escalate the issue to the ombudsman if a response was not received within eight weeks or was unsatisfactory.

The regulator said: "We are closely monitoring firms that are, or have been, active in this sector – particularly those that have been involved in BSPS transfers.

"We will share any further information as soon as we can."

Last week Andrew Bailey, chief executive of the FCA, was asked to force the new British Steel Pension Scheme to compensate steelworkers who were mis-advised to transfer out of the old scheme.

The FCA is not technically in charge of regulating the scheme, which is being authorised by the TPR. But both regulators are working together on the supervision of the British Steel case. 

Ten companies stopped giving transfer advice after they were identified as key players advising members of the British Steel Pension Scheme to transfer out of their defined benefit (DB) pensions, some of which have since defaulted.

Earlier this month the liquidator for one of these companies, Active Wealth, was able to recoup an additional £24,150 from the firm’s clients after chasing them for outstanding advice fees.