Following the introduction of the insurance mediation directive on 14th January 2005, many IFA firms granted with waivers by the FSA that have not yet obtained PI cover are now trading illegally.
However, PYV has successfully secured the rights to provide competitively priced, full retroactive PI cover for IFAs who have FSA waivers in place. As well as this, PYV has negotiated a discount for IFAs with interim FSA authorisation.
Ian Boscoe, PYV Managing Director comments: “PYV is pleased to announce it can offer full PI cover to IFAs with waivers, plus we have bucked the seemingly common market trend of applying higher premium rates to firms with interim FSA authorisation. PYV has successfully managed to negotiate terms with key insurers to ensure firms with interim authorisation will not be charged any additional loading due to the interim status.
“Furthermore, firms with interim authorisation that appoint PYV as their PI adviser will automatically receive a discount worth up to 10% at their first renewal, provided they achieve full authorisation and meet key insurance underwriting criteria.”
The insurance mediation directive requires IFAs to have at least £1m in PI cover in place, and will be followed in April 2006 by the market in financial instruments directive, which will require firms to have £500,000 extra cover, set aside £30,000 capital or a combination of the two.
