Policies

The regulation of general insurance products by the Financial Services Authority from January 2005 has impacted upon the way Fee Protection Insurance is administered.

Professional Fee Protection have spent considerable time addressing the issues that may arise in order to ensure that our different approaches to fee protection insurance remain at the forefront of the industry.

When we receive your practice information, we ensure that you are authorised to carry out any regulatory responsibilities undertaken during the process. Examples of regulated activity include: holding client money, completing an application form, dealing/assisting with a claim and recommending a client takes out a specific policy.

If you are not an authorised or licensed practice, we have used our specialist knowledge of the sector to develop certain innovative solutions for you.

Non-Regulated Policies

No FSA authorisation/DPB licence needed.

• Client Decide
  
  Using this scheme, the accountant can recommend that clients consider the advantages of taking out fee protection insurance (most professional bodies require clients to be advised of this under "Best Practice") and can provide literature from PFP however, they must not recommend a specific product. Application forms are sent back directly from the client to PFP who will process the forms, collect the premiums and deal with subsequent renewals. A fee agreed between PFP and the accountant will be paid to the accountant for this service. In the event of a claim the client would need to complete a very simple form. Please note that completing a claim form or application form on behalf of a client is a regulated activity. Any other information we require would be provided directly by the accountant.
  
  
• Practice Protect
  
  Under this scheme, it is the accountancy practice that is the policyholder. The firm is not recommending to its clients a particular insurance contract, nor arranging one on their behalf. The firm is insuring itself and not its clients however can recover the cost of the premium by levying a charge to clients for a service. In the event of a claim, the firm, as the insured, would make the claim and credit the proceeds against the client's liability for fees.

Regulated Policies

Your practice must be FSA authorised/licensed by your DPB for you to offer these schemes to your clients.

• Group Schemes
  
  Under these schemes, the client purchases the insurance from the accountancy firm which has purchased the cover from PFP for all or some of its clients. Many firms already operate such schemes and as long as they are FSA regulated (with their FSA permission) they can vary the scheme to include general insurance, or if they have the appropriate DPB licence, they are then able to conduct general insurance business and can continue to operate the same scheme. Firms which are not regulated or DPB licensed but who are currently operating such schemes, need to consider whether they wish to become regulated or adopt one of the schemes outside the regulations.

To learn more about the FSA and fee protection insurance, visit our Resource Centre, or fill in our no-obligation Quick Quote form so we can advise you which policies will be best for you.

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