A 15 year long-stop for financial advice complaints moved one step further with the launch of a survey to identify ways to implement the measure. The Association of Professional Financial Advisers (APFA) and campaign partner Zurich asked advisers for their views on alternative options.
The online survey sets out a number of ideas for implementing the long-stop:
- Limit liability to fifteen years from the end of ongoing advice
- Limit liability according to the nature of the product
- Limit liability by creating a centrally controlled and funded Professional indemnity insurance policy
“There is a clear need to reform the current liability structure in the advice market,” said Chris Hannant, Director General of APFA. “We need to find a solution that addresses advisers’ needs and meets the FCA’s standards. We have set out a range of options and we are seeking advisers’ input. The more input and support we have the stronger our case to reform the current liability structure with the FCA will be.”
The Fair Liability for Advice campaign was launched in 2012 by APFA to call for a cap on liability for financial advice complaints. The trade body has been in discussions with the FCA since the regulator said it would consider the case for a 15-year long stop on complaints to the Financial Ombudsman Service in 2014 (see Brunel News May 2014).
“The industry needs a solution which protects consumers without exposing financial advisers to complaints which can be brought by their clients for an unlimited amount of time,” said James Burgoyne, Director – Claims & Technical, Brunel Professional Risks. “We work hard to find IFAs competitive PII cover in a difficult and challenging market. Anything that reduces the liabilities that IFAs face could help to make insurance cover more widely available.”
Further information about the survey has been set out in APFA’s press release and news stories on the topic have been published by FT Adviser and Money Marketing.