PI claims 'avalanche' leaves IFAs sleepless - Professional Indemnity Insurance for IFAs

29/10/2008

The need to have Professional Indemnity insurance has been reinforced as it has been reported that independent financial advisers (IFAs) are to face an increase in the number of consumer complaints.

So says Sheriar Bradbury, managing director of Bradbury Hamilton, who states that as the financial market continues to be volatile in character, the Financial Ombudsman Service is set for a surge in complaints as investors pay more attention towards the way their money has performed (as appearing on IFAonline.co.uk).

He reported that as consumers look to recoup losses they are set to turn to their monetary advisers, in turn, meaning IFAs are going to have to look to the protection their PI provides now more than ever "to see them through the rough times".

Mr Bradbury added that those IFAs who do not have comprehensive records in place showing evidence of risk profiling and their client's understanding of how that has an effect on the advice they were given at the time are set to face "many sleepless nights".

In June, the Financial Services Authority reported that it no longer regards PI insurance cover as a suitable fallback option for those IFAs which are wilfully negligent.

Click here for more information about Professional Indemnity Insurance for IFAs.

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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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