Ami warns mortgage brokers to check PI cover for 1 April

The association of mortgage intermediaries warns that brokers should check that they have appropriate professional indemnity insurance cover in time for compensation changes due on Monday.

From 1 April, the financial ombudsman service compensation limit will increase from £150,000 to £350,000, meaning that any complaint made after that date could be subject to the award limit.

The association says that brokers need to talk to their insurer about excess calculations on their policy and look at ways of increasing capital adequacy to cover any shortfall.

Ami chief executive Robert Sinclair expressed anger at how the regulator was unwilling to engage in any consultation or serve notice “for longer than three weeks.”

“The lack of understanding from the regulator is incredible,” he adds. “We will be taking this back to the FCA at the highest level.”

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