PFS: 'Insistent' clients must take responsibility for actions

Independent risk warning could indemnify adviser against possible claim, body suggests

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Clients who instruct their adviser to carry out a pension transfer against their advice - so-called 'insistent clients' - must be held accountable for their decisions, the Personal Finance Society (PFS) has said.

The Society has suggested savers receive an independent risk warning from a trustee, which would indemnify the adviser, trustee and Financial Services Compensation Scheme against any future compensation claim. It would include confirmation the client has instructed a transfer against professional advice. The term 'insistent client' has gained traction as a result of the retirement reforms outlined at Budget 2014 and introduced in April this year. The changes offer pension savers aged 55 or over and with a defined contribution (DC) scheme unprecedented access to their pots. Howev...

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