The Personal Finance Society (PFS) has urged thousands of financial advisers to write to their local MP over the consequences of the hardening professional indemnity insurance market and increases to the Financial Services Compensation Scheme (FSCS) levy.

The society proposed a potential solution to deliver a more sustainable financial education and compensation strategy, and suggested this could improve consumer confidence to engage in their financial wellbeing, while also reducing the financial uncertainty for advisers created by the FSCS levy and soaring PI premiums.

A template letter for advisers to send to their local MP has been drafted by the PFS, allowing advisers to raise awareness of its solution amongst more politicians about the problems facing consumers – as well as how this issue is restricting access to advice for the MP’s constituents.

PFS chief executive, Keith Richards, commented: “This is not a generic communication for a letter writing campaign, which would have little impact and just create more paperwork for MPs.

“We are encouraging financial advisers to tell MPs and other policymakers about what is happening in their community in their own words and giving them the option of referencing the PFS’s proposed solution as a starting point for debate in a clear and accurate way.

“We hope this template will allow advisers to add their voice to calls for concern to be converted into government action. Consumers’ rights under pension freedoms are in jeopardy, access to regulated advice denied, while at the same time the public have become increasingly exposed to the devastating impact of scams.

“There is a need for us all to do something, whether as individuals, companies or associations – it is time for a ‘united’ approach to the issue to force our elected government to take action.”

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