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...
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