IFAs 'face more post-retirement PI claims' - Professional Indemnity for IFAs

13/05/2008

The number of Professional Indemnity (PI) claims faced by retired independent financial advisers (IFAs) could be on the increase, it has been claimed.

IFA firm MLP makes the assertion in an article for IFAonline addressing the PI needs of retired advisers.

The rise of claims management firms is also identified as further fuelling the increase in complaints being made.

As any complaints are retrospective to the time that advice was given, the publication warns that advisers could remain at risk for the duration of any plan they have supplied guidance on.

MLP tells IFAonline: "This puts any IFA who is looking at his exit strategy at a greater risk from complaints after retirement."

The need for retiring IFAs to maintain run-off PI cover to protect against any claims received during retirement was recently reasserted in the Viewpoint on Succession Planning published by the Association of Independent Financial Advisers and Association of Mortgage Intermediaries.

In response to this problem, PYV recently announced that they had managed to negotiate an 'IFA PI Run-off Cover Option' with a select number of insurers which is designed to offer retiring IFAs set rates for further cover based on their last premium as an active company.

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) 2008 Adfero Ltd.

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