Advisers should consider recording all conversations and meetings with clients so they can present a full picture of communication to PI insurers for renewal, according to panellists at Money Marketing Interactive.
Appleton Gerrard financial planner Kusal Ariyawansa says he follows the practice of recording all conversations.
He says: “If people aren’t financially savvy, advice runs completely off trust and the regulator should enforce the recording of all conversations to be sure of that. With DB there’s guidance and advice and because it’s so complicated, it’s vital we have a robust process that will give protection to both the consumer and the adviser.”
He adds: “We need the regulator’s protection to look after us while we look after our clients. The advantage of clients recording is you know clients know things are upfront. You can listen back and pick up key phrases or subtle hints so that you know them better. If we start by recording all conversations, we protect ourselves and our clients.”
Pensions and Lifetime Savings Association DB policy lead Tiffany Tsang says the FCA needs to provide support so advisers can be confident they are keeping costs in check for their PI renewal.
She says: “There needs to be a discussion around the table with representatives from the advice community and the insurance community, because if the advice community is shrinking because they can’t get insurance, that is a big problem.”
Aegon director of pensions Steven Cameron agrees the FCA’s interest in assisting advisers around this should be high.
He says: “DB transfers is a complex area but we should be able to re-risk it and PI insurers shouldn’t have to look at things as such a big risk. The silver lining about the British Steel situation is the whole industry is keen to do the right thing around transfers now.”