As reported by Money Marketing this week; the Law Society has urged solicitors not to comply with the Solicitors Regulation Authority’s new rules allowing clients to be referred to restricted advisers.
Last week’s decision by the SRA to relax the requirement to refer clients to Independent Financial Advisers (IFAs) for advice could expose solicitors to negligence claims from clients.
Law Society Chief executive Desmond Hudson says: “Under the new rules, solicitors will not be penalised for exercising discretion. We urge them to use that discretion to only refer and recommend IFAs to clients to avoid the risk of claims.”
Sifa chairman Ian Muirhead has added; “I think the decision is appalling. It will lead to solicitors permitting clients to engage with the wrong sort of financial advisers, which will give rise to misselling claims, which will damage solicitors, damage the profession, and damage the solicitors’ compensation fund.”
IFA Centre managing director Gill Cardy says: “The SRA’s decision is flawed and defies the Law Society’s position. It is not in the best interests of solicitors’ clients and must be reconsidered”.
As we previously highlighted in our article Solicitors Shaping the Future of Financial Advice, Swindells Financial Planning has always given and will continue to give independent financial advice as we believe that this approach best serves our clients. We know that this value of independence, in the true sense of the word, will sit well with many Solicitors’ firms who also hold dear the value of providing the best possible advice for clients.
Do not hesitate to contact us at our Sussex offices in Seaford and Uckfield if you would like to discuss any financial planning matters your clients may have and you want truly independent and trusted financial advice.