What is the approximate minimum level of professional indemnity insurance required for intermediaries under FCA rules?

The approximate minimum level of professional indemnity insurance required for intermediaries under FCA rules is indeed £1 million. This requirement is set to ensure that intermediaries can adequately protect themselves and their clients from financial losses resulting from professional negligence, errors, or omissions in the provision of their services.

The £1 million threshold reflects a balance between ensuring adequate coverage for potential claims against intermediaries and recognizing the operational realities of businesses in the financial services sector. It is important for intermediaries to maintain this level of insurance not only to comply with regulatory requirements but also to foster trust with clients, demonstrating a commitment to professional standards and risk management.

Other options may represent either insufficient coverage or amounts specified in different currencies; however, the specific regulatory framework mandates £1 million as the standard minimum for professional indemnity insurance in the UK for intermediaries.