The FCA’s technical specialist Rory Percival has outlined steps advisers could take to deal with insistent clients.
Mr Percival, who was speaking at a Morningstar conference in London last week said that advisers should provide their advice in a concise manner, emphasising the need to ensure the client’s understanding of any recommendations.
He said if a client wanted to take a different course of action to that recommended by the adviser, the adviser should make clear what risks the clients' preferred course of action entailed.
Mr Percival added that if the client decided to go ahead regardless, advisers must be clear that this was not their recommendation.
Also at the event, Nick Kirrage, co-head of the global value team for Schroders, warned that advisers should consider investors’ behaviour when it comes to investment decisions. He told delegates “that the influence of human emotion on investment was the only constant factor in the industry”.
Adviser view
Mal Hughes, independent financial adviser for Powys-based GIFP Financial Advisers, said: “If a client wants to do something but I do not think they should do it, I would not be inclined to go ahead with it.”
