How does an adviser play it safe when it comes to proving that they have acted in the best interests of the client?
There are 5 key things that the adviser must do - and be able to evidence afterwards - to show that they have worked for the benefit of the client, and not acted out of self-interest.
In reality, the ethical tests are never applied - unless the regulator comes knocking for an audit, or a customer expresses dissatisfaction. Both of those circumstances can happen at any time, so you do have to apply these tests. If you find yourself as an adviser thinking "I don't think I have the knowledge to do that really well"....then you really should decline to try and provide the advice. Otherwise you are inviting future dissatisfaction and problems.
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