FSA to look at IFAs’ PI requirements

The Financial Services Authority (FSA) is to review the professional indemnity (PI) situation of independent financial advisers (IFAs) following stories of 300% premium hikes. Currently required to carry PI cover for at least three times the annual income of the firm, they are hoping for a relaxation in this, possibly on a risk assessment basis rather than the present ‘one-size-fits-all’ basis.