Professional indemnity insurance (PII) costs could rise by between 200% and 500% for financial advisers under a "worst-case scenario", the Financial Conduct Authority (FCA) has admitted.
This revelation comes as the FCA confirmed in PS19/8: Increasing the award limit for the Financial Ombudsman Service, financial firms would be forced to pay out up to £350,000 in compensation to a customer if the Financial Ombudsman Service (FOS) found it to be appropriate. Although the FCA said PII costs could rocket by anything between 200% and 500%, according to forecasts made by insurers, the watchdog said that figure "contrasts" with its own estimate of a 140% increase. The regulator admitted some firms could stop providing defined benefit transfer advice as a result of the PI hi...
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