UK. PFS pushes for grace period on PI amid ‘evidence of serious impact’
The Personal Finance Society has called for a four-month grace period for advisers whose professional indemnity insurance is due for renewal during the coronavirus lockdown. In a letter sent to the Financial Conduct Authority and HM Treasury this week the professional body asked for regulatory concessions to help advisers at at time when “demand for their help has never been greater, yet pressure on their own resources are stretched”.
This included a call for advisers to be granted a four-month grace period if their PI insurance were to be due for renewal during the coronavirus lockdown, which came into force on Monday (March 26).
The PFS said: “There is evidence availability of cover continues to reduce and renewals are being seriously impacted by current lockdown measures introduced by the government to slow down the spread of the coronavirus.”
The professional body also asked the regulator to confirm the loans and grants announced by the government in a bid to keep businesses afloat during the market downturn would not breach adviser’s capital adequacy requirements. Earlier this month chancellor Rishi Sunak announced a £330bn war chest of loans to protect businesses against the financial difficulties caused by the coronavirus.
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