Advisers warned to watch what they write
Keeping adequate notes is important for advisers looking to avoid getting on the wrong side of the Financial Markets Authority, which has identified this aspect as one Authorised Financial Advisers (AFAs) can improve on.
But according to Kensington Swan partner David Ireland, advisers also need to ensure they don’t “doodle” anything on their notes that could come back to haunt them.
For instance, he said advisers should avoid writing derogatory remarks about clients on their notes because these notes could potentially be “discovered” (made available to the other party) in the event of a court case.
“The rules of discovery are fairly complex; there’s no hard and fast rule other than never write anything on a client file that you would have reservations about the client seeing,” he said.
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