INMA 4.3.2 Minimum requirements for professional indemnity insurance policies

(1) The amount of an INMA firm’s professional indemnity cover must be determined by the firm’s governing body, and must be adequate, having regard to the nature, scale and complexity of the firm’s business.
(2) An INMA firm’s professional indemnity insurance policy must provide:
(a) cover for claims for which the firm may be liable as a result of its conduct or the conduct of its employees, the members of its governing body and its agents;
(b) appropriate cover for legal defence costs;
(c) continuous cover for claims arising from work carried out from when the firm was authorised to conduct a regulated activity in or from the QFC; and
(d) cover for awards made against the firm under the customer dispute resolution scheme.

Note Customer dispute resolution scheme is defined in the glossary.
(3) An INMA firm must not take out professional indemnity insurance that provides for the payment of fines imposed by the Regulatory Authority or the QFC Authority.
(4) If the Regulatory Authority considers that, because of the nature, scale and complexity of a particular INMA firm’s business, the firm should increase the level of its professional indemnity insurance cover, the authority may direct the firm to take out professional indemnity insurance that provides a specified minimum level of cover.
Derived from QFCRA RM/2014-4 (as from 1st January 2015).