Defined Benefit  

PI insurer asks advisers for 'gold standard'

"It’s been mentioned elsewhere that PI insurers are putting into place what is essentially regulation and while that’s fine if there’s bad practice we need to ensure there aren’t ‘innocent victims’ who suddenly face a lack of PI cover due to changes in that market through no fault of their own."

Financial planner at Red Circle Financial Planning, Darren Cooke, said the poor practice seen in DB transfer advice made it clear that standards needed to be higher.

"The PFS Gold Standard is one very good way of moving this forward," he said. "If you want to stay in this area of advice, I think you must be prepared to reach ever higher minimum requirements.

"The fact the PI insurers are now adopting the PFS Gold Standard is just one of those and if it helps keep PI premiums for firms lower while delivering better client outcomes all the better."