“The emphasis on continuous professional development, enhanced risk management strategies, and the adoption of technology in advisory processes will be pivotal in navigating the future landscape.”
These elements are expected to contribute to a more “stable and sustainable” market where the availability and affordability of PII cover reflects a balanced assessment of the risks and rewards inherent in providing financial advice, McGrath explained.
He also pointed out that in this evolving landscape, advisers needed to remain agile, informed and proactive in their approach to risk management and client service.
“By doing so, they can secure their position in the market, ensuring their ability to provide valuable advice while managing the risks associated with pension freedoms, regulatory complexities, and the heightened liabilities introduced by increased Fos limits.”
Despite the PII market facing challenges in the past few years, according to McGrath, the future holds promise for those prepared to adapt and evolve.
He said: “The journey from 2014 onwards has been a testament to the resilience and adaptability of the UK’s financial advisory sector, setting the stage for a future where the market not only recovers but thrives, underpinned by higher standards of professionalism and consumer protection.”
alina.khan@ft.com
