Do you have statutory liability cover?
- Yes (69%)
- No (26%)
- I don't think I need it (5%)
Loading ...Defending a breach of the law would not only be a substantial cost to a FAP, but could be a significant interruption to the day-to-day operation of their business.
However, as Curated Risk’s Clinton Stanger writes (see below), there are steps FAPs can take to mitigate the risk of defending oneself should the regulator call with allegations of a breach.
He suggests buying statutory liability insurance saying that while PI covers advisers against civil claims by third parties for financial loss, statutory liability insurance protects against a prosecution or official investigation following an unintentional breach of the regulations.
Stanger says the premium cost for statutory liability is negligible compared with the exposure and impact of being uninsured. But does the adviser community see it as a worthwhile product?
Cast your vote today and we’ll report back next week with the result.
See our report: The Value of Statutory Liability Cover for Advisers