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FSA panel warns over PI providers excluding FSCS claims

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FSA panel warns over PI providers excluding FSCS claims

The Financial Services Authority’s (FSA) Smaller Business Practitioner Panel has raised concerns over new professional indemnity (PI) insurance policies which exclude paying out on Financial Services Compensation Scheme (FSCS) claims.

Minutes from the FSA board meeting of 27 September show that the panel warned the regulator’s board that many PI insurers did not understand recent regulatory developments faced by small firms.

It highlighted ‘problems associated with new PI policies excluding FSCS claims’.

The minutes said: ‘The board noted the difficulties and lack of understanding of some insurers regarding regulatory developments and associated risks, and the problems associated with new PI policies excluding FSCS claims.’

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