On April 21, the UK’s Financial Conduct Authority (FCA) published a new webpage (the Webpage) setting out its position on the impact of the COVID-19 pandemic on professional indemnity insurance (PII) for financial advisers.

The FCA notes that some firms are concerned that the pandemic may affect their ability to renew PII in a timely manner, impacting their operational resilience. As a result, the FCA has liaised with the International Underwriting Association, and understands that PII cover remains available in the market and thus the COVID-19 pandemic has not prevented insurers from undertaking the renewals process.

According to the Webpage, the FCA continues to require firms to have PII policies in place to support their ability to meet liabilities as they fall due and to protect their consumers.

Finally, the Webpage notes that firms should notify the FCA in their usual way if they have concerns that they will be unable to secure appropriate PII cover, including at the point of renewal.

The Webpage is available here.