Brokers looking to offer equity release should ensure they have PI insurance in place for these activities - Professional Indemnity for IFAs

16/03/2009

Brokers wishing to enter the equity release market have been urged to consider the issue of Professional Indemnity (PI) insurance.

In an article for Mortgage Solutions, Stuart Wilson, managing partner of the Equity Release Club, points out that those wishing to enter the equity release market should "consider their regulatory set up".

Mr Wilson adds that those choosing to join a network need to ascertain whether they are allowed to carry out sales and whether they can offer both lifetime and reversion products.

The managing partner adds that brokers which gain direct authorisation to offer guidance on equity release should first of all check with their PI insurance provider to ensure they will be covered for these activities.

Mr Wilson also comments that these brokers should ensure that they are in possession of the right qualifications.

Last year, PYV agreed to assist the Personal Finance Society (PFS) with the PI issues of their PEER Group, an industry initiative "Promoting Excellence in Equity Release".

Earlier this month, Professor Russell Smith wrote in the Independent that those looking to start up their own business - which includes the provision of expert guidance as a part of its service - should ensure they have PI insurance in place, should a client wish to seek to compensation in the event of such advice turning out to be inaccurate or have a detrimental impact on them.

Click here for more information about Professional Indemnity for IFAs.

Click here for more information about Professional Indemnity in general.

PYV are one of the UK's leading providers of professional indemnity insurance. This news article has been produced by Adfero in collaboration with PYV and its unauthorised use is not permitted.

(c) 2009 Adfero Ltd.

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