FAIS Professional Indemnity requirements for FSPs

FAIS requires most authorised Financial Services Providers to hold Professional Indemnity cover appropriate to their licence category and the products they advise on.

The scope of cover required can vary depending on whether you advise on short-term insurance, long-term insurance, investments, medical aid or employee benefits — and whether you handle client funds or assets.

Where representatives handle client funds directly, Fidelity Guarantee cover is typically required alongside PI cover, since Fidelity addresses theft and dishonesty exposure that a PI policy does not.

FSPs should review their PI arrangements whenever their licence category, representative count or product lines change materially.