Financial Conduct Authority  

FCA steps in on hundreds of adviser PI cases

"It is important that advice firms take the opportunity to feed evidence of any issues they are experiencing and provide examples of cost, excesses or exclusions to help the FCA gain a more accurate picture – the PFS is also happy to pass on any evidence on behalf of the sector."

Earlier this month the FCA decided it was in the best interests of both the defined benefit market and consumers to push ahead with its contingent charging ban, which is set to come into force October 1. 

The issue of professional indemnity insurance has arguably been one of the most contentious issues faced by the advice market in the last year, closely linked by some to the increased compensation limit of the Financial Ombudsman Service and the regulator's crackdown in the defined benefit sector.

Rising premiums and a growing list of policy exclusions are now commonplace in the advice industry, including one adviser who saw his insurance costs rocket by 430 per cent after completing three defined benefit pension transfers over the past five years.

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