Solicitors’ insurance: is it time to stop insuring rogue lawyers? - Times Online: "The problem becomes sharper because solicitors, unlike most professionals, hold client money — although as Maher notes, an independent financial adviser (who need not carry insurance) can effectively lose all your life savings and the maximum you can recover is £48,000 from the Financial Services Compensation Scheme."
Mr Maher is incorrect, independent financial advisers are compelled to have insurance in order to remain authorised by the FSA. The problem of IFAs not being insured arises when the firm is no longer authorised because, if and when it is available, run off cover lasts for a period of six years whereas the IFA's liability lasts forever, a situation which is unique to that profession and one which lawyers would no doubt find unacceptable and that may be why they have their own regulator, Ombudsman and compensation arrangements.
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