Advisers who segment their client banks and cull those deemed unprofitable to the business ahead of the RDR may be opening themselves up to more compensation claims, according to Zurich's Richard Howells.
Zurich UK Life's intermediary sales director said many of the "so-called consultants" active in the market were wrong to encourage such drastic measures, potentially leaving disgruntled ex-clients. "You will just leave yourselves open to these ambulance chasers, who are keen to apply a retrospective view," he said. "With hindsight it is easy to pick holes in past investments so it would be a short term view to look at ditching clients." He added the "vast majority" if IFAs were not able to rely on a handful of "mythical multi-millionaires" to keep them going and would need to keep ...
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