I was involved in an FT podcast this week, on the cost of and problems getting professional indemnity insurance for financial advisers. What I learnt from the other expert (yes, I know) on the panel, was that the problem is not that the insurers have to fork out for lots of claims against us, quite the opposite. It’s that our regulators and the ombudsmen might at any time change the rules or order a review of certain kinds of business which might, who knows, lead to claims; and a field day for the cold callers and texters: ‘Have you ever had a financial adviser? Did they wear a red tie and drive a Porsche…?”
“Letter of authority: Why now is the right time for change”
This may sound like a non-issue from outside the world-of-financial-advice bubble. It is the bain, however, of the daily working lives of many of us, particularly of those paid by we advisers to do the dirty work of dealing with the many providers with whom we have to work.
