Mortgage News
Advisers must have PII in place despite coronavirus, FCA warns
The financial regulator has stressed that advisers must have professional indemnity insurance (PII) in place, despite the upheaval created by the coronavirus.
PII cover “remains available in the market” and the Covid-19 crisis is not preventing insurers from carrying out renewals, the Financial Conduct Authority (FCA) said in a notice posted on its site.
Insurers may, however, ask more detailed questions to understand risk.
The regulator added the market is “evolving” and it is assessing the approach to underwriting.
The FCA said: “Our position remains that firms need to have PII policies in place in accordance with our rules to support their ability to meet liabilities as they fall due and to protect their consumers.”
Aldermore Insights with Jon Cooper: Edition 9 – Why lending strategy is becoming more central in buy to let
Sponsored by Aldermore
The regulator added: “We will continue to monitor the impact that coronavirus has on all firms’ operational resilience, including insurers.
“Where we see evidence that insurers’ ability to process renewals is being affected, we will consider taking action in line with our approach to supervision.
“Where an individual firm has concerns it will be unable to secure appropriate PII cover, including at the point of renewal, it should notify us in their usual way.”