This article, originally published in Insurance Day, considers the insurance impact of the FSA's recent "Dear CEO" letter aimed at the wealth management industry following its thematic review which found "widespread failings" regarding the quality of customer information held by companies and the suitability of client portfolios. The FSA has suggested, and with the threat of enforcement action, that the wealth management firms carry out a review and weigh up whether their client portfolios are suitable, and then act on their own initiative with regard to disadvantaged customers or those who have suffered detriment. Many professional indemnity and official investigation costs cover, however, will require a claim or written notice of official enforcement action to trigger cover.
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