letters

IFA compensation

David Norton, IFA Sir, Peter Hargreaves in his article of 19 January is absolutely right to say it is unfair for IFAs in general to have to pick up the cost of the compensation scheme when companies like Towry Law and R J Temple go bust after recommending precipice bonds or other investments. I think this problem is even worse than Peter points out - because financial advisers are effectively paying for all of this a second time as well, through their Professional Indemnity Insurance policies. The extortionate cost of such cover, if you can get it at all, now bears little resemblanc...