A report in industry newspaper Money Marketing has suggested that proposed EU professional insurance increase requirements will be blocked by the UK Financial Services Authority.
The EU proposals potentially meant that Financial Advisers in the UK would have to increase the amount of cover significantly.
Given the huge costs of professional insurance anyway in the UK, in the £5-7,000 plus even for just the smallest one or two man firm, any increase would have huge impact.
The FSA have hinted that this may be counter productive to competition and force many smaller financial advisers out of business.
Our view
Common sense from the FSA. The UK is the largest and most tightly regulated financial services market in Europe. Consumers have better protection than ever, although we concede there are still some "bad apples in the cart".
Our EU cousins will have a shock when and if these sorts of professional negligence insurance and capital requirements start to bite. Perhaps they will see sense!