The Financial Conduct Authority (FCA) has said the inability for firms to compensate consumers via their professional indemnity insurance is “unfair".
In a ‘Dear CEO' letter published on Tuesday (21 January), addressed from FCA director of life insurance and financial advice supervision Debbie Gupta, she said the transfer of these compensation costs to other market participants via the Financial Services Compensation Scheme (FSCS) levy places an unnecessary burden on other firms. "It also threatens confidence and participation in financial services market," she added. She said the FCA was concerned some advisers were holding "inadequate" financial resources and professional indemnity insurance (PII) for the business activities they car...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes