Mortgage Advisors policy cover requirements
The current FCA requirements for Mortgage Advisors are as follows:-
If the firm is a home finance intermediary, then the minimum limit of indemnity is the higher of 10% of annual income up to £1 million, and:
(1) for a single claim, £100,000; or
(2) in aggregate, £500,000.
Note however that different levels of cover are required if the firm is also an Independent Financial Advisor or sells general insurance policies.
For a firm which does not hold client money or other client assets, the excess must not be more than the higher of:
(1) £2,500; and
(2) 1.5% of annual income.
For a firm which holds client money or other client assets, the excess must not be more than the higher of:
(1) £5,000; and
(2) 3% of annual income.