FSA warns PII providers on dodging Arch cru claims

The Financial Services Authority (FSA) has warned professional indemnity insurance (PII) providers against excluding cover for Arch cru claims when renewing IFAs'policies.

Attention has turned to the PII cover firms hold following the launch of a consultation on setting up a £110m redress scheme for Arch cru investors. That scheme, if approved, would see all advisers who sold the funds forced to review their recommendations and, where mis-sales are discovered, compensate the customers affected. The FSA estimates hundreds of firms will have to pay compensation and that several will go out of business. In a ‘Dear CEO' letter sent to PII providers last week, the regulator addressed concerns it has received from advisers about the possibility of Arch cru...