Over 10% of independent financial advisers (IFAs) are operating without professional indemnity insurance cover, according to the FSA.
The City watchdog revealed yesterday that just over 10% of the UK's 4,500-5,000 IFAs are operating without cover.
Furthermore, the regulator claimed that up to 310 firms have been operating without cover since November and a further 153 advisers have been unable to renew professional indemnity insurance.
Observers claim the shortfall is due to soaring professional indemnity insurance premiums. Rates have increased by up to 300% because of the shortage of capacity.
