Watch out for new non-smokers: ISO

The scheme has had a number of calls recently from advisers wanting help dealing with clients who thought they should have asked them about whether they had quit smoking.

Clients had realised that they might have been able to get cheaper premiums if they had become non-smokers and then complained about the adviser, wanting a refund of the additional premium paid.

Ombudsman Karen Stevens said it raised a number of issues, including whether there was an obligation on advisers to actively seek out information about changes in client circumstances.

“We think that it would be very helpful to include a question about smoking when discussing changes in circumstances with clients.”