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Financial Advisers

Volume 405: debated on Wednesday 21 May 2003

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To ask the Chancellor of the Exchequer if he will list the companies providing independent financial advice that the Financial Services Authority has required to cease regulated activities because they have been unable to secure professional indemnity insurance. [114650]

I am advised by the Financial Services Authority (FSA) that three independent financial adviser (IFA) firms have had their authorisations to conduct regulated business cancelled, in circumstances where the absence of professional indemnity insurance (PII) was wholly, or in part, an issue. There are about 3,500 IFA firms in the UK.The FSA continues to work closely with independent financial adviser firms who are experiencing difficulty obtaining PII. A firm will not necessarily be required to cease regulated activities where it cannot obtain PII cover.