Get ready to pay, FOS tells brokers

Brokers have been advised to ensure their professional indemnity insurance is in shape to cope with a rising tide of complaints.

In a recent speech, Tony Boorman, decisions director and principal om-budsman at the Financial Ombudsman Service, revealed the FOS has seen a 50% increase in mortgage complaints this year compared with Q1 2007.

While he insists that the FOS will consider complaints in a balanced manner, he says clients will be reimbursed if mis-selling is apparent.

Neil Pointon, chief executive officer of indemnity insurer PYV, says that now’s the time for brokers to examine their coverage.

He says: “Brokers should be looking at exclusions to their plans. They need to be aware that insurers also expect these complaints and are adjusting their offerings to protect themselves.”