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Press comment: FAMR implementation


If you are covering today’s consultation paper FAMR: implementation part II and insistent clients please see the following commentary from Old Mutual Wealth chief distribution officer Richard Freeman:

Richard Freeman“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.”

For more information contact

Michael GlenisterOld Mutual Wealth020 7778 963807469

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £118.1 billion in customer investments (as at 30 September 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.