He who owns the client is King

Prudential came under fire for a letter sent to an intermediary’s client that made no mention of the assigned adviser.

The letter instead stated financial advice was one route of support and pointed to a restricted advice offering from Prudential.

A part of the letter to the client reads: "If you would like advice on the best option for you and your circumstances, a Prudential Financial Planning adviser can help.

Prudential was accused of trying to ‘poach’ the IFA's clients for their own restricted advice arms – an accusation it firmly denies.

The provider stated it places a high value on its relationships with financial advisers.

Surely any communications with the client should recognise that the relationship began with the adviser.

A spokesperson for Prudential told FTAdviser: "We do all we can to support advisers and have a clear process when dealing with customers who are their clients. 

"We recognise the importance of advisers’ relationships with clients and have strict internal rules to protect this.”

So, should a provider ever mention to a client who was introduced to their products by a financial adviser that they also offer financial advice?

In financial services, as with pretty much everything in life, trust is vital.

If it is an adviser that recommended the product, surely any communications with the client should recognise that the relationship began with the adviser.

If you have proven your worth and are in regular contact with your client you should have nothing to fear from a letter where they push their own financial advice arm.

Why would they opt for a provider’s restricted advice when they are enjoying your high quality independent advice?

But if you have neglected your client you would be right to fear that just the mere whiff of financial advice being offered elsewhere could result in them never darkening your door again.

Ultimately the thing to remember is clients don’t belong to anyone.

Yesterday’s loyal purchaser of BHS pants is tomorrow’s M&S underwear peruser.

If all it takes is a line in a letter from a provider to lure a client away from you then they never valued you or were yours in the first place.

emma.hughes@ft.com