Imagine being forced to give bad advice
One adviser I met recently had clients in an old investment product – but this story could equally well apply to several risk products I know.
Back when the product was offered it was a reasonable solution. Today, it is expensive and there are plenty of better options. The company that offered it kind of knew that – they closed it to new business. They did not replace the product. No upgrade pathway was offered to clients. No equivalent product suitable for the clients to transfer into was obtained for the advisers operating under a restrictive list of providers and products.
So, the clients were stuck, and the adviser was worried: the terms of his employment meant that he had no options.
It is a good illustration of how a professional adviser, limited by the choices of their employer, can face situations in which they are in a box – unable to give good advice.
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