Higher insurance premiums for structured products make RDR compliance difficult

Ian Lowes, Lowes Financial Management

Some professional indemnity (PI) insurers in the UK are charging higher premiums or refusing to cover structured products, which they consider to be risky investments, which is causing problems for independent financial advisers (IFAs) and hindering their efforts to comply with theFSA’s 2012 Retail Distribution Review (RDR).

“[The problem] first came to the fore around 2003 after the precipice bond issue,” says Ian Lowes, managing director of Lowes Financial Management, a Newcastle-based IFA.

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