IFA approaching retirement expresses PI concerns - Professional Indemnity Insurance for financial intermediaries

07/10/2009

Written by Neil Pointon

An independent financial adviser (IFA) has expressed concern about the buying of Professional Indemnity (PI) 'run-off' insurance, it has been revealed.

Speaking to CityWire, Terry Keen, an IFA for Lloyd-Davies Financial Planning Management, states that although he has never had a complaint, as he approaches retirement he is worried about the prospect of paying for PI cover when no longer working.

"If you are going to get out you have to make a clean break," Mr Keen points out.

The 67-year-old Wales-based adviser claims that the forthcoming retail distribution review (RDR) could end his career in financial services and as such is looking to sell his business and retire when he is 70 just prior to the review coming into force.

Neil Pointon, Chief Executive of specialist PI broker PYV, advised: "If you are considering retiring, it would be prudent to take legal advice about how to deal with your past liabilities, prior to taking any action. If you retain these liabilities, due to the 'claims made' basis of PI policies, you should seriously consider maintaining this insurance for as long as you remain liable."

Earlier this year, Suuqea managing director David Cox claimed the introduction of the RDR could see as many as 10,000 IFAs withdraw from the industry, leaving millions of Britons without access to independent financial guidance.

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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