Quarter of IFAs have no insurance
More than a quarter of Britain's independent financial advisers have failed to renew their professional indemnity insurance by April 2003, according to chief Treasury secretary Paul Boateng.
But he claimed in reply to a formal question in the Commons from Democratic Unionist MP Iris Robinson that the official figures may overstate the crisis.
Boateng said: ‘IFAs may be reluctant to confirm that they have PI cover until they have a policy document, even if they have agreed terms.
‘This means that the reported position can appear less positive than it is.’
Boateng said the FSA advised there are about 4,00O directly authorised firms of IFAs in the UK.
Two thousand eight hundred had been due to renew PI cover between September 2002 and April 2003 and over 1,950 had done so or been granted a waiver of the requirement to have PI.
He said: ‘The FSA is in discussion with other firms, and works with them to find a solution in light of their individual circumstances.’