MIGI 8.2 The requirement to hold PII

Mortgage intermediaries must hold PII cover unless:

1. (1)

   the intermediary has net tangible assets of more than £1 million; or

2. (2)

   the intermediary has a 'comparable guarantee' from an authorised person with net tangible assets of £1 million.

Insurance intermediaries must hold PII cover unless the intermediary has a 'comparable guarantee' from an authorised person with net tangible assets of £10 million.

Broadly, a 'comparable guarantee' is an agreement by the guarantor to cover any claims that would be covered by a PII policy that satisfies our rules. You should be aware that, if your firm is a member of a group of companies that contains an authorised person, any comparable guarantee must come from that firm. For full details about whether your firm does or does not need to hold PII see PRU 9.2.1 R.