Some advisers are taking a stand against the old saying that the customer is always right - and are making a case for firmly telling the client ‘no'.
Treating customers fairly (TCF) is at the heart of the UK's financial services regulation, where the primary focus of the Financial Conduct Authority (FCA) is to regulate the industry in such a way as to promote good consumer outcomes.
However, as Barclays' head of behavioural and quantitative investment philosophy Greg B Davies details in his monthly column for Professional Adviser, consumers don't always behave in a rational way that would lead them to positive results, especially when it comes to money.
Clients often come to an adviser's door clutching the latest "guaranteed", get-rich-quick scheme - and they are certain its a great deal.
The responsibility for acting irrationally while managing their own finances rests with the individual. But once third party advice is taken, the adviser becomes liable for the execution of the business he or she writes.
Just doing what the client wants in this situation could be bad for both the client and the adviser.
For some advisers, saying ‘no' to a client who is carried away with an idea is a key part of the value in the service they offer.
"Saying ‘no' sometimes is essential," according to Courtiers Investment Services director and chief investment officer Gary Reynolds. "You have to tell the client ‘you don't need to take this risk'. Greed can work against the investor."
Phil Billingham Partnership director Phil Billingham agrees, and takes particular aim at what he calls the "cautiously greedy".
"As advisers we have to stop pandering to the cautiously greedy who demand low risk and high returns. These sorts of clients have always been there but the more we understand about behavioural economics, the more it is exposed - people are not financially rational. All clients want something for nothing.
"The danger is the risk of unsuitable products being recommended."
As a solution, Billingham uses Finametrica, which he said usefully exposes inconsistencies in clients' expectations and understanding.
"We don't use it as ‘oh, you're a five, you go in this portfolio', but rather as part of a conversation to move people into a portfolio where they are emotionally comfortable," he said.
"Most clients get it if it is properly explained to them. We need much more honesty."
For OakTree Wealth Management associate director Tony Shah the key to success is managing client expectations.
"It used to be about promising the earth and not delivering. The easy option for advisers was just to say ‘yes, I can get you high returns'.
"Now if the financial adviser does a good job and explains the risk profile arrangements to clients - that if you want high returns you have to take more risk - the clients will be educated."
Barretts Financial Solutions founder Kim Barrett believes clients shouldn't bother going to a financial adviser if they don't intend to listen to their advice.
"What is the point of you appointing a financial adviser and paying them if you are not going to listen to them? As an adviser you have to be strong in your convictions, and in the end you want a bit of respect from your clients.
"My view is if they won't listen they can go to Hargreaves Lansdown."
Read more Better Business news HERE
Read more Investment news HERE
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till