PIMFA, which represents 1,000 investment managers and financial advisers, has called on the FCA to postpone implementation of revised FOS compensation limits.

Following the revelation that the regulator had boosted FOS’s compensation limit to £350,000, the trade body has been assessing the impact with its member firms, particularly those which are currently seeking to renew their Professional Indemnity Insurance (PII).

The organisation says it is “clear with less than one week to go before the rules are implemented on 1 April, that a number of insurance companies are not yet in a position to confirm whether or not they will able to offer terms reflecting the increased limit.”

It says many firms currently seeking to renew will not be able to get cover reflecting the revised FOS limit by 1 April.

The impact on the PII market was an area of key concern raised by PIMFA in its submission to the CP.

A spokeswoman said: “We are disappointed that in setting an implementation date of 1 April 2019 the FCA has failed to properly assess the impact on insurance companies and their ability to offer terms reflecting the changes in the compensation limit.”

She added: “The FCA must immediately postpone the implementation of the rules and revisit the impact of the increase in the compensation limit on the PII market.”