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Ex-Tenet director lines up insurer to build long-stop cover
by Michelle Abrego on Aug 21, 2013 at 10:32
Former Tenet director Geoffrey Clarkson has lined up insurer Marsh UK to create a new professional indemnity (PI) insurance product that would limit advisers’ past liabilities.
Clarkson (pictured), who left his job as group director of Tenet earlier this year, said that he was working with Marsh to gather data on firms to get a ‘firmer view’ of what policy terms could be offered and at what price.
Marsh would be the underwriters and providers of the possible product, which would insure business risk before a given period, for example before 2000, working like a long-stop to ring-fence advisers' past liabilities.
Clarkson said that a few advice firms have committed to help the development by providing data about their risk profile and balance sheet exposure and is in talks to bring in more.
He said: ‘The whole point is to help every type of firm but firms where people want to retire or realise value in due course.’
Clarkson said he was optimistic that an ‘innovative professional indemnity insurance programme could be developed which would help advisory firms plan their future with greater confidence. Acquisitions would also be made simpler and quicker, resulting in a more vibrant and dynamic advisory sector.’
He also has meetings lined up with the Financial Ombudsman Service and the Financial Conduct Authority to discuss the solution. He said that based on comments made over the years by regulators, an industry-led solution would be welcomed.
The lack of an long-stop for financial advice has been at the centre of many initiatives and challenges to the government and the regulator.
Network Tenet has recently launched an e-petition to secure 10,0000 signatures to call on the government to remove legislation that permits the Ombudsman to consider a claim against an adviser without any long-stop restriction.
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