THB UK Professionals Risks has launched a new liability product specifically for individuals named as ‘approved persons' by the FSA.
FSA Approved Persons Liability will be written exclusively by THB under a binding authority from Pembroke Syndicate 4000 at Lloyd's and cover will be available to all classes of approved person and will provide liability cover of up to £500,000 for an individual and £2m for a company.
Under FSA regulations, an approved person is an individual who performs a ‘controlled function' within a firm approved and regulated by the FSA. A controlled function is a role that has great regulatory significance such as a compliance officer or other senior manager. Failure to comply with FSA regulations can result in an approved person being subjected to a personal fine or penalty.
Roddy Graham, managing director of THB UK Professional Risks, said: “This is an exciting new product with real relevance to today's highly regulated financial services industry. In covering all approved persons and not just directors & officers, together with an earlier coverage trigger than most D&O policies, we believe it will provide more comprehensive protection for our client base.
“It's a common misconception that this type of risk is covered by D&O policies, but that's not necessarily the case. Not all approved persons are directors.
"Regulatory intervention is usually excluded from D&O cover, plus an allegation of a wrongful act is also required to trigger the policy. FSA Approved Persons Liability will provide higher limits and fewer exclusions plus the freedom for a policyholder to choose his or her own lawyer.”
