FSA climbs down on professional indemnity

The FSA admitted its stance on professional indemnity insurance (PII) may have been too harsh and wa...

The FSA admitted its stance on professional indemnity insurance (PII) may have been too harsh and was setting out new terms concerning renewals. An FSA letter said the regulator was looking into issues in the PII market, considering its availability and price. Under FSA rules, all advisers need adequate and compliant PII, and must present evidence of cover within 28 days of purchase. Problems in the PII market made it difficult to find suitable cover, and premiums rose by up to 300% year on year.