Two financial advisers are being pursued beyond retirement for compensation claims paid out by the Financial Services Authority to poorly advised clients. Claims are thought to be in the order of £200,000.
Our view
We accept that if a perosn has been mis-advised or mis-sold they should be dealth with fairly and potentially compensated for any loss. However, it seem extreme when a financial adviser has paid for professional negligence insurance protection throughout his working career that the cover does not then operate after the business has been closed. This is the joke of the industry - even though you have retired you are still required to take out professional indemnity insurance known as "run off" cover.