UK - City regulators are to introduce controversial new rules to stop IFAs from using insurance cover to pay fines.
Instead IFAs will be forced to pay for all penalties out of their own pocket.The move will come as a devastating blow to smaller IFAs already struggling to obtain professional indemnity insurance.
Wentworth Rose chief executive Philip Rose attacked the Financial Services Authority’s plans.
He said: “It would be nice to see the regulator do something which is not against IFAs for a change. The FSA wants to chase all the IFAs into big firms and this will help push consolidation.”
But the FSA said it was “reacting to concerns” in the industry that IFAs were increasingly taking out insurance policies to pay for fines.
The Pensions and Lifetime Savings Association (PLSA) is in the process of convening an industry-wide group to take forward the work of the Institutional Disclosure Working Group (IDWG).
The Transfers and Re-registration Industry Group (TRIG) has given its support to an initiative which aims to complete occupational pension transfers within three weeks.
Scottish Widows has completed a bulk annuity deal for the Hitachi UK Limited Pension Scheme.