Kingsbridge Holdings PLC
01 November 2002
KINGSBRIDGE HOLDINGS PLC
1 NOVEMBER 2002
PROFESSIONAL INDEMNITY INSURANCE
On 29 October 2002 The Financial Services Authority ('FSA') announced certain
modifications to its rules relating to the requirement for independent financial
advisor firms ('IFAs') to maintain professional indemnity insurance.
The FSA announced these modifications in light of the fact that some 1,200 IFAs
are due to renew their professional indemnity cover in November 2002 in
circumstances in which capacity in the professional indemnity market has been
reduced and premiums for professional indemnity insurance have risen
Concerns have been expressed to the FSA by some IFAs that they were finding it
increasingly difficult to obtain cover which complies with FSA requirements.
The FSA has stated that it expects the rules modification to assist IFAs in
obtaining professional indemnity insurance.
Kingsbridge Holdings plc ('Kingsbridge') obtained renewal of its professional
indemnity cover for its subsidiary Benson McGarvey Limited on 30 April 2002.
However, notwithstanding its efforts to do so, Kingsbridge has, to date, been
unable to renew its professional indemnity cover for other group companies for
business to be written and advice to be given on or after 1 November 2002.
Kingsbridge has reported the position to the FSA which has indicated that it
will work with Kingsbridge whilst it continues to seek to renew its outstanding
professional indemnity cover on the basis of the modifications announced by the
Shareholders will be kept informed of further developments.
Kingsbridge Holdings Plc 01423 523311
Martin Greenwood - Chief Executive
David McKee - Director
Peter McGarvey - Director
Teather & Greenwood LIMITED 020 7426 9000
This information is provided by RNS
The company news service from the London Stock Exchange