Ask insistent clients to put it in writing, advisers urged

Carmen Reichman
clock

Clients insisting on going against their adviser's recommendations should be asked to put their instructions in writing to show they are aware of the risks, a compliance officer at support services provider SimplyBiz has suggested.

Richard Nuttall (pictured) said advisers should ask their clients to fully outline their instructions and pen a signed note stating they are aware the transaction goes against the advice given. "Something as important as this really needs to be in their own handwriting," he said. Simply asking a client to sign a typed statement offers inadequate protection as it may not prove the customer understands their actions, he added. So-called 'insistent clients' are those who instruct their adviser to carry out a transaction against his or her advice. The term has gained traction as a r...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Trade bodies call for chancellor to stop FCA public enforcement

Trade bodies call for chancellor to stop FCA public enforcement

‘Proposals to publicise investigations are a worrying development’

Isabel Baxter
clock 29 April 2024 • 2 min read
SDR extension plans will ensure 'uniform standard' for portfolios

SDR extension plans will ensure 'uniform standard' for portfolios

'Retail-focused firms are also facing a short timeline to prepare'

Cristian Angeloni
clock 24 April 2024 • 4 min read
FCA proposes advisers and platforms 'must' communicate SDR labels

FCA proposes advisers and platforms 'must' communicate SDR labels

Distributors also must provide access to consumer-facing disclosures

Isabel Baxter
clock 23 April 2024 • 1 min read