Ricky Chan, director and chartered financial planner at IFS Wealth & Pensions, said such errors could be detrimental to the adviser client relationship.
Mr Chan said: “[This error] is certainly damaging to the adviser-client relationship as it could appear to the client that the adviser has been removed or is in some way illegitimate, hence trust could be lost. So it can be unsettling for clients, particularly if it’s a fairly new client.”
He added: “The providers need to ensure that they respect both advisers and clients, and mistakes like this should not happen as it indicates some failings in their record keeping.
“Furthermore, if the client has responded and agreed for the new adviser to become their servicing agent, this would likely breach some data protection/GDPR rules as the new agent would have access to the client’s policy.”
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