Opinion  

Your Shout: Letters to the editor

Financial Adviser Letters

Financial Adviser Letters

It cannot really be a surprise that people of “lower socio-economic status” do not “embrace” support through advice of whatever type.

I am afraid I do not really see what this research has added to our understanding, since it appears to have been mis-specified in the first place.

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Name and address supplied

 

Future of the PII market

Upon reading the issues raised in the story about the FCA’s stance on professional indemnity insurance (November 28), what strikes me about the FCA’s clarification is that there are now very few insurers in the market to cover companies advising on defined benefit. 

This in itself is driving overall price and excess limits. 

While there should be sufficient cover in place by financial companies absolutely, the rules directed by the FCA are forcing the PI market to shrink. 

Some providers are now insisting upon advice for small pot clients, which in turn could mean they do not realise their opportunity to transfer as companies are not prepared to do this due to the risks involved and the commerciality aspects. 

At what point is an individual’s right to transfer therefore being impeded or denied? Where will we end up with this? 

At what point in the future could insurers pull out of insuring advice companies? 

It is not too difficult a scenario to fathom. Advice companies make up such a small percentage of insurers’ overall market share, its not that important to them. Where will we be then as an industry? Where will individuals be without anyone to act upon their rights with their monies?

I hope sensible solutions are found.

Name and address supplied

 

Lack of advisers

It would be great to know the sort of qualifications and general requirements an adviser would need if they wanted to enter the industry; as a veteran or a newbie. 

Considering the number of organisations one can obtain exams and certificates from, such as the Chartered Institute for Securities & Investment or the Chartered Insurance Institute, could there be a lack of awareness around requirements that are needed or what qualifications will suit one best?

Could a contributing factor to the decline in the diversity and number of advisers have something to do with the fact that upon entering the industry, often young, inexperienced professionals must complete four, five, or six intense exams, fork out a large sum of upfront cost, plus work for six-12 months before they can even apply?

Upon the glorious moment an adviser can say they are professionally qualified, their hearts sink when they discover a £24,000 paycheck. I believe if this was equated to any other profession or industry, they would face a similar dilemma.