Professional Indemnity Insurance
Must a CMS licence holder/RFMC get professional indemnity insurance ("PII") when it is exempt from holding a financial adviser's licence?
The requirement for PII under the Financial Advisers Act 2001 applies to licensed financial advisers (sec. 9(1) FAA; See also reg. 17 FAR). Accordingly, the requirement to have PII does not apply to holders of a capital markets services licence that are exempt from the requirement to hold a financial adviser’s licence. Also, we are not aware that the MAS imposed this requirement on a holder of a capital markets services licence that is exempt from the requirement to hold a financial adviser’s licence.