§ Mr. McCrindleasked the Chancellor of the Duchy of Lancaster if he will have further discussions with the Securities and Investments Board regarding the desirability of all intermediaries authorised under the Financial Services Act 1986 holding professional indemnity cover; and if he will make a statement.
§ Mr. MaudeThe regulation of persons authorised under the Financial Services Act is a matter for the board. The board's draft rules, which were before the House when it approved the delegation order transferring the relevant powers to the board, made clear the board's preference for a widely drawn compensation scheme rather than a requirement to hold professional indemnity. However, I know that the Board shares my view that there will continue to be substantial advantages to firms in taking out professional indemnity cover.