Separating the advice and application process could mean advisers avoid facing litigation. Peter Ch...
Separating the advice and application process could mean advisers avoid facing litigation.
Peter Chadborn, principal of CBK, has urged intermediaries to separate the two parts of the intermediary service after the Financial Ombudsman Service ruled in favour of Scottish Widows paying a claimant out in full. Its tied adviser had failed to note the conditions the client outlined at application stage. By separating both parts of the service, whether the adviser is tied or independent, Chadborn said it would avoid any potential comeback.
"We get the client to complete the application form," he added. "Furthermore, we encourage them to take the application form and brochures away to read, digest and complete in their own time."
Chadborn thought the split could mean the client had been educated on non-disclosure and was not put under pressure to remember medical history on the spot; and, while the adviser had not completed the form, meaning an unsuccessful claimant could not allege information was disclosed but not recorded.
The process would also be Treating Customers Fairly-compliant, he added.
