Phoenixed advisers could be refused PI cover

Martin Bamford, financial planner at Informed Choice, said: "Phoenixing represents a huge financial burden on responsible adviser firms, who shoulder the costs through higher FSCS levies.

"I would like to see the professional bodies take a tougher stance when it comes to advisers involved in phoenixing, preventing them from getting a Statement of Professional Standing if their prior commercial decisions have caused a financial burden on peers through the FSCS.

"With the PI insurance market getting increasingly tough for firms involved in DB transfers, and a looming FCA review of the market, firms will be worrying about their liabilities."