Indemnity Insurance is an absolute must for your financial advisor. If he can not prove to you that his indemnity will cover 100% of your pension or investment then you should walk away immediately!
Through our studies of numerous scams across the world we have found that many scams operate with below par indemnity. In fact, it is almost a hallmark of a scam scheme.
Think of it like this, if the advisor was considering your best interests he would ensure that you were covered no matter what happens. If he (or indeed she) does not have full indemnity he is not interested in looking after your money.
Professional indemnity insurance needs to cover 100% of your pension or investment. Always check with your advisor and ask for proof of his level of cover.