So, if I word the statement that our contract requires the policy to be reviewed and that, if this is not undertaken, either by us or another adviser, the client may find the Financial Ombudsman Service may not support us on any claim.
If I provide advice which is correct at that moment in time and do not state it should be reviewed regularly, I would understand a future claim.
The regulator is wrong – a legal long-stop might never be given, but my right to place within my contracts conditions to protect the client and my business against claims when the client has been negligent is certainly against my rights.
This is very simple. If the original advice was wrong, then no legal long-stop will protect you, but if you have not bothered to review and check that the policy or advice is still correct years later, this is your negligence and the client should not have to pay for that. If I do not state this in my contract then that is my negligence and I should accept the consequences.
Prism Independent Financial Advisers
Newport, South Wales