The Personal Finance Society has called for a four month ‘waiver’ for financial advice firms struggling to find affordable Professional Indemnity insurance during the Coronavirus pandemic.

It is urging the FCA and the Treasury to ‘relieve’ the pressure on advisers seeking PI cover during the crisis by allowing them more time.

The professional body, which represents 40,000 members, has written to the regulator and government calling on them to introduce temporary measures to relieve advisers of the pressures they face in finding comprehensive PI insurance.

The PFS envisages a 4 month 'breathing space' or 'waiver' for firms that cannot get affordable cover, with the Treasury or FSCS used as the "ultimate backstop" during this temporary period of no PI cover.

The body has repeatedly called for help for advice firms struggling to find affordable PI. Many firms have seen premiums soar, particularly those working in the DB pension transfer market.

The PFS has called for a four-month waiver for advice firms searching for PI insurance and has also asked the Treasury to consider acting as ‘reinsurer of last resort’ for finds unable to find cover.

The professional body renewed its calls for long-term reform of the Financial Services Compensation Scheme levy and the professional indemnity insurance market earlier this year believing the two go hand-in-hand.

Keith Richards, chief executive of the Personal Finance Society, said: “While we acknowledge the FCA and Treasury have a list of urgent priorities at present, the challenges being faced by advice firms with pending professional indemnity insurance renewals and those who have had little option but to accept unacceptable terms or cease trading is leaving the sector and consumers exposed.

“We welcomed the FCA’s pragmatic introduction of crisis reaction measures, such as suspending the 10 per cent reporting rule and extension to key deadlines, but the crisis of PII and consequential impact on FSCS remains at odds.

“Advisers across the country are doing a great job supporting their clients in these unprecedented times so it is frustrating to hear from many of them that the ever-present problem for the profession – obtaining affordable, comprehensive professional indemnity insurance – continues.

“Amid the current crisis, financial advice is more important than ever before and we cannot as a society afford to lose such valuable services, which is why action both short and long-term is required.”