Insurers offering PI insurance are constantly having to "second guess" where the next regulatory action will come from following actions against Arch Cru and Keydata.
Damian McPhun from Beale and Company Solicitors was speaking at the IFP's Accredited Financial Planning Firms conference held in London today.
Mr McPhun was speaking on what the impact of Keydata and Arch Cru had had on PI insurance for advisers.
Speaking on Keydata, Mr McPhun said: "It's not just the scale of the Keydata failure but the unpredictability of it.
"Over 90 per cent of investors did not blame their adviser for their losses. We were then shocked by the FSCS' decision to launch blanket procedures against advisers."
He said the fact regulatory action was so unpredictable meant it was unsurprising PI insurance was rising. He said: "We're trying to second guess where the next regulatory assault will come from."
Accredited Financial Planning Firms are eligible for a discount on their PI insurance as they are recognised as quality Financial Planning firms.
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He also questioned the Financial Services Authority moves to look back at earlier issues and the challenges this faced for solicitors. He said: "The FSA appears to be happy to apply hindsight to many issues. And this means going back in time to find advisers guilty of mis-selling. This contradicts the legal aspect which looks at whether it was unsuitable at the time of sale."
Other speakers at the conference today include Richard Stradling from Baker Tilly, Nigel Botterill from Entrepreneurs Circle and Gillian Hepburn from Platform People.
In the afternoon there will be an extended round table Q&A session following feedback from last year's conference of how valuable the session was.
Financial Planner will be covering the conference all day with coverage on financialplanneronline.co.uk and tweets of sessions via our Twitter feed @FPM_Online. There will also be coverage in Financial Planner magazine.

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