IFA’s cover requirements
The following is taken from the FSA Web Site and is current as at September 2010:
If the firm is an IMD insurance intermediary, no lower than:
(i) €1,120,200 for a single claim against the firm; and
(ii) €1,680,300 in the aggregate; or, if higher, 10% of annual income up to £30 million
If the firm is not an IMD insurance intermediary, then the following limits of indemnity apply:
(i) if the firm has relevant income of up to £3,000,000, no lower than £500,000 for a single claim against the firm and £500,000 in the aggregate; or
(ii) if the firm has relevant income of more than £3,000,000, no lower than £650,000 for a single claim against the firm and £1,000,000 in the aggregate.
In addition to the requirements in 13.1.4(2), the policy should make provision for the following:
(i) for a firm with relevant income of more than £6,000,000, the total aggregate limit required is set at a higher level – please ask for details
The policy must not:
(1) Exclude any type of business or activity that has been carried out by the firm in the past or will be carried out by the firm during the time for which the policy is in force;
(2) Exclude liabilities which are identified or crystallised as a result of regulatory action against the firm (either individually or as a member of a class of authorised persons).