The adviser also needs to make clear to the client what the risks are in following the alternative course of action.
If the advice includes a pension transfer, conversion or opt-out, there may be additional requirements, according to the FCA.
Finally, the adviser needs to make it very clear that the actions are against their advice.
According to Steven Cameron, pensions director at Aegon, it’s for each firm to decide how they want to approach insistent clients, including those transferring from DB schemes.
He said: "The adviser’s role is to explain to their client very clearly why they are not recommending a transfer, based on the client’s personal circumstances. Hopefully, in most cases, the client will accept the recommendation but ultimately, it’s the client’s decision."
Andrew Tully, technical director at Canada Life, said: "I’m surprised the figure is as high as it is.
"Firms may find difficulty in getting professional indemnity cover for insistent clients as some insurers may want to include that as an exclusion on their policies.
"In addition there is a risk to the firm as the pensions ombudsman has, in the past, required firms to pay compensation even where the client has been insistent."
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