A second opinion? A FOS complaint?

[ April 16, 2015 ]

An adviser contacted me on Monday to discuss a new client. His client had lost money in the hands of another financial planner; probably more than $60,000 over four years. The adviser was concerned that the previous financial planner’s advice was not appropriate to the client and was not in the client’s best interests, and that this had caused his client a financial loss. We looked at it and agreed. We are now preparing a FOS complaint, and we expect the client will be able to recoup the lost $60,000, plus interest. The adviser has a very happy client, and has already received extra referral work from her friends and family. It’s a difficult moral conundrum for many financial planners: what do you do if you believe the previous adviser was negligent and your client lost money as a result? The answer is you owe a duty of care to your client, and you do not owe a duty of care to the previous financial planner. Within the parameters of professional propriety you are bound to advise your client of your concerns and if appropriate help them recoup their losses. Step one: get your hands on the offending SOA, and other documents, and send them to me with a summary of your thoughts and your client’s concerns. No harm in checking….

The Dover Group