Are you confident your file notes would protect you if your advice was ever disputed by a client?
- Yes (54%)
- Not sure (33%)
- No (13%)
Loading ...Our latest poll is asking you to reflect on whether you’re confident your file notes would protect you if your advice was ever disputed by a client.
The question follows our story on a recent FSCL case study, highlighting why proper record keeping is essential for advisers to avoid ‘he said, she said’ disputes.
In this particular case to settle the complaint, the adviser offered to refund his client half of the premiums she had paid since 2011 (see: Client Dispute – Adviser Refunds 50% Premiums).
The dispute resolution service’s case study notes that if there is ever a disagreement between an adviser and a client about what was said or agreed upon, FSCL has to look at all the facts.
…where there are no file notes it is one person’s word against another’s…
It notes in cases where there are no file notes “…it is one person’s word against another’s, we are likely to give more weight to the client’s memory of events because they may remember a particular situation better than the adviser, who deals with many clients”.
In this case study, a client made a complaint against her financial adviser in 2024, saying that he did not cancel her IP policy even though he knew that she had become a stay-at-home parent and had been unemployed since 2011.
The adviser did not have any records to support his version of events, which made it a ‘he said, she said’ situation,” says FSCL, “something that is really hard to resolve without proper documentation.”
The financial services ombudsman notes that to settle the complaint, the adviser offered to refund his client half of the premiums she had paid since 2011, which the client agreed to.
And hence our question. If a dispute ever arose with a client of yours, would your file notes back up your version of events to the satisfaction of an outside party such as a dispute resolution service?
We look forward to receiving your views and will report back next week…