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Guide to handling insistent clients

  • Describe what an insistent client is and what is driving the rise in them.
  • List what the FCA says about insistent clients.
  • Identify the risks these clients pose in relation to DB transfers and how advisers can protect themselves.
CPD
Approx.60min
Guide to handling insistent clients

Introduction

Clients seek out the advice of professional financial advisers for good reason: advisers have in-depth knowledge, years of experience and financial qualifications.  

And good professional advisers give good advice. They have listened to their clients, thought long and hard and have tailored their advice to the needs of their client.

The expectation is that the client acts on the adviser’s recommendations and achieves their financial goals.

But it does not always work out that way.

On some occasions, the client might decide that they want to do things differently and are going to take a different path from the one mapped out by the adviser.

In other words, they are not going to accept the adviser’s recommendation. Instead, they ask them to take the course of action they have chosen, against the adviser’s advice.

In these circumstances, the client is, according to the Financial Conduct Authority’s (FCA’s) definition, an “insistent client”. 

In this guide, read about what is behind the rise of insistent clients and what the Financial Conduct Authority says about this type of client.

It also covers the potential risks insistent clients pose in relation to defined benefit transfers and how advisers can protect their business from insistent clients.

The guide is worth an indicative 60 minutes of CPD.

Contributors to this guide are: Zoe Dagless, a chartered financial planner at Addidi Wealth; Jeannie Boyle, executive director and chartered planner at EQ Investors; Keith Richards, chief executive of the Personal Finance Society; Frank Morton, a director at Phil Anderson Financial Services; David Hearne, director and wealth management adviser at Satis Asset Management; Nick McBreen, a financial adviser at Worldwide Financial Planning; Scott Gallacher, director and chartered financial planner at Rowley Turton; Paula Steele, managing partner at John Lamb Financial Planning; Rhiannon Bates, managing director of The Risk Factor; Paul Allan, a financial adviser at Wren Sterling; William Hunter, founder of Hunter Wealth Management; Carl Lamb, managing director of Almary Green; Robert Morris, a partner at RPC; Megan Butler, executive director of supervision, wholesale and specialists at the FCA; Financial Conduct Authority.

Fiona Nicolson is a freelance journalist

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. The FCA's survey of more than 3,000 firms revealed what percentage were facilitating insistent clients?

  2. The FCA cautions against where the adviser processes the case on an insistent client basis, when this does not reflect the circumstances. What is this called?

  3. According to Mr Hearne, it typically takes how long at his firm to engage a client through the onboarding process?

  4. What does Ms Steele say about PI premiums?

  5. True or false? Mr Allan says: "The best tack to take is not to take the business from insistent clients in the first place."

  6. What does Mr Morris say is a "good starting point" for advisers who want to protect themselves from insistent clients?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Describe what an insistent client is and what is driving the rise in them.
  • List what the FCA says about insistent clients.
  • Identify the risks these clients pose in relation to DB transfers and how advisers can protect themselves.

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