“The proposals around insistent clients look like a common-sense approach to this issue. In an ideal world every client would follow the recommendation set-out by the financial adviser. However, it is inevitable that in some cases clients will make a conscious decision not to follow advice, even if they understand the risks involved in doing so.
“This can create a catch-22 situation which helps neither the adviser nor the client.
“Common sense seems to have prevailed. As long as the original advice meets normal regulatory requirements, and the drawbacks of pursuing an alternative path are made clear, advisers can still support insistent clients. It should give firms re-assurance and avoid creating an impasse when clients make an informed decision not to follow the recommendations of their adviser.
“Likewise, it makes sense that firms should be able to deliver some guidance to customers without it amounting to a personal recommendation. Sometimes customers want basic information about their finances and the options that exist for them, without wishing to receive a professional recommendation.
“The industry as a whole need to be able to offer practical help to customers when they wish to make their own financial decision. If firms are afraid of drifting into advice and resist offering clients any help or guidance at all, the end result is dis-engagement and customer frustration.”