3rd November 2016

IFA Claims Best Practice

Tagged: Independent Financial Advisors, Professional Indemnity

Receiving a complaint from a client is always disappointing and is unfortunately ever more common in this increasingly litigious environment, especially with the involvement of claims management firms in recent years. The Financial Conduct Authority (FCA) has made a number of changes to the Dispute Resolution Rules which you should be familiar with. It is, also, of the utmost importance that the terms and conditions of your Professional Indemnity Insurance (PII) policy are read and adhered to when dealing with any circumstances that arise.

As specialist IFA PII insurance brokers, we come across a number of firms who are surprisingly unfamiliar with the terms and conditions of their policy, and only find out that they do not have the appropriate claims reporting systems in place when it is too late. It is essential to familiarise yourself, and all your staff, with the terms and conditions in your PII policy relating to the identification, detection and notification of any potential “circumstance”.

We recommend that you that you regularly review and clearly define your internal procedures as any failure to abide by your policy’s terms and conditions could potentially leave your firm exposed.  Julian's article on the Illuminate website provides some key points you need to consider.

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