FCA urges principal firms to check PII cover

Regulator finds 10% of sampled firms may not have adequate cover in place

Isabel Baxter
clock • 1 min read

The Financial Conduct Authority (FCA) has urged principals to check their professional indemnity insurance (PII) cover.

This comes as a review showed nearly 10% of firms sampled needed to make changes to their policies or their business model to meet the regulator's rules. The FCA reviewed PII documentation from 269 principals in July 2024. It first highlighted the issue with principals in July 2023 and reminded them about it in January 2025's monthly regulatory newsletter. Seven percent of advisers took action following the watchdog's engagement, as did 9% within wealth management, 11% within insurance, and 11% within mortgages. Non-compliant PII policies identified by the regulator included firms ...

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

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA proposes to cut down on data reporting for firms

FCA proposes to cut down on data reporting for firms

Part of regulator’s programme to ‘reduce burden’

Isabel Baxter
clock 16 April 2025 • 2 min read
FCA pumps £3.7m into advice/guidance boundary review work

FCA pumps £3.7m into advice/guidance boundary review work

Come as the regulator proposes to increase fees by 2.5%

Isabel Baxter
clock 08 April 2025 • 3 min read
Open letter slamming FCA email policy sent to regulator and government

Open letter slamming FCA email policy sent to regulator and government

'Alarming lack of consultation'

Beth Brearley
clock 20 March 2025 • 2 min read