FCA unveils three step process to deal with insistent clients

Carmen Reichman
clock

The Financial Conduct Authority (FCA) has published a paper clarifying its stance on how advisers will be held liable when dealing with insistent clients.

The regulator said advisers should ensure they follow three steps when dealing with insistent clients to ensure they have satisfied regulatory requirements. The factsheet followed repeated calls from the industry for clarification around the issue in order to protect advisers. The regulator technically does not recognise the term 'insistent client' and has not previously issued any rules on how advisers should deal with them. However, it said: "There is no rule to prevent advisers from transacting business against their advice if the client insists. "In practice, there may be oc...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA urges principal firms to check PII cover

FCA urges principal firms to check PII cover

Regulator finds 10% of sampled firms may not have adequate cover in place

Isabel Baxter
clock 28 February 2025 • 1 min read
FCA to undertake MPS Consumer Duty review

FCA to undertake MPS Consumer Duty review

Regulator recognises the sector has been ‘growing at pace’

Isabel Baxter
clock 26 February 2025 • 2 min read
FCA ongoing services wish lists: 'Advice shouldn't be like a car tax reminder'

FCA ongoing services wish lists: 'Advice shouldn't be like a car tax reminder'

FCA urged to adopt a 'more principled and realistic approach'

Jen Frost
clock 25 February 2025 • 3 min read