Insistent Customers

Following feedback and information from the FCA and FOS, we are putting together some procedures to once again facilitate a process for advisers who wish to conduct Insistent customer business.

FOS have indicated that if the IFA firm strictly adheres to the recommended FCA three stage process and guidance on processing insistent customer business, they would not foresee upholding a complaint about this in the clients favour

FOS maintain that the main reason for upholding insistent customer complaints in the clients favour is where there is sufficient doubt that this was in fact at the clients request and was in some way manufactured or influenced by the adviser

The FCA recognise that how to handle insistent customer business is presently only guidance and will need to be included in the Rule Book

Judgement will need to be applied by IFA’s for each insistent customer transaction. If for example the client wishes to invest his/her life savings into an offshore UCIS promising wildly exaggerated returns, then the IFA firm should not facilitate that transaction, even on an insistent customer basis. On the other hand, if a client wanted to invest their pension into a regulated fund or investment which they have specific knowledge of, or for understandable reasons they preferred to invest in a different asset class to that recommended by the adviser, then these can be considered as appropriate insistent customer transactions

ALIFA will shortly be issuing detailed guidance of how to compliantly process insistent customer business, should you wish to facilitate this in the future.