How to mitigate your liability on advice

LIABILITY

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In the continued absence of a long-stop on complaints, the Association of Independent Financial Adviser (AIFA) has put together five small steps firms can take to mitigate their life-long liability for financial advice...

In a report published this morning, AIFA, in partnership with Zurich, set out a number of options for policy change on the issue of liability, including a ‘customer agreed' solution. But it may take some time to convince the powers-that-be to even consider new ideas, so it set out small steps advisers can take right now. As AIFA admitted, they won't address the fundamental issues driving the 'Fair Liability 4 Advice' campaign, but they could help:   If you're a sole trader, switch to a limited liability company. This doesn't eliminate the potential for complaints to come back ...

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