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Original poster

Are there any ethical guidelines for FA's regarding wills and financial dealings with clients?

18 replies

Wisteria · 10/09/2007 10:34

I am a bit concerned about my Grandmother's FA. He has been investing her money for quite a time for her and appears to be very close to her now. He brings her chocolates when in hospital, comes round for cups of tea, does a bit of shopping for her now and again which is very kind of him, call me cynical but I question his motives.

I am uneasy about it as I feel he is acquisitive, she phoned me last night and told me that he is buying her car from her for £1000 (I am cross personally as I wanted it so I suppose a bit of sour grapes too ), but also I believe the market price is more.

My question is - are there any laws/ procedures from the FSA regarding the acquisition of client estates from wills as she has now left him a considerable portion of her estate, and it seems very unethical to me. I feel he has deliberately wooed her for this and she is very old and easily swayed by a good looking man IYSWIM. I may be wrong and he may just be a thoroughly nice chap, but I don't think so.

Don't get me wrong, she can do what she likes with her money, it's hers after all but it all seems very strange to me so thought I would ask you knowledgeable people!

TIA

OP posts:

Niecie · 10/09/2007 10:41

Sounds pretty dodgy to me as well. I am no expert though just wanted to say that I think you are right to be worried.

Have you had a look at the FSA website and their complaints procedure?

I would think, given the circumstances that you had grounds to challenge the will but you don't really want it to come to that, I'm sure.

Tortington · 10/09/2007 10:44

it must be a conflict of interest.

I would tenativley phone the FSA with an anon enquirey

Original poster

Wisteria · 10/09/2007 10:50

Good plan custy, will do. I just know that however I approach it, it comes across that I am worried for my own sake and it's just me being a bit 'dog in the manger' .

OP posts:

Tortington · 10/09/2007 10:53

i know, i know.

but him buying her a car - is a little more than being nicey nicey with a box of choccies.

she ddidn't look after her money arefully for all these years for it to be schmoozed away by some sycophant in a suit.

MrsPuddleduck · 10/09/2007 11:03

I would keep an eye on him. I have come accross this before professionally. I knew that a FA had befriended one of my clients and then when I did her will for her she left him a cash gift.

I had no choice other than to do the Will as I remember but it really made my blood boil as they guy was a complete slime ball.

Original poster

Wisteria · 10/09/2007 11:08

No, he's buying her car from her, I'm glad it is leaving her as at 91 she really shouldn't be driving - but made me really angry as I wanted it and had offered to buy it from her already (little red Mini Mayfair), would have been an ideal car for my dd to learn in and my dp to buzz to work and back in the winter .

OP posts:

Tortington · 10/09/2007 11:08

oh i see -

Original poster

Wisteria · 10/09/2007 11:14

Willmouse, thank you - I was worried about that. I'm not sure what I can do though to keep an eye on him - it's all very awkward. I live 300 miles away and go down when I can for a few days to fill her freezer up with meals etc but it's difficult organising dcs etc.

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Original poster

Wisteria · 10/09/2007 11:17

I was really hoping that someone would come on and say - it's illegal and they're not allowed to accept will gifts from clients!
Wishful thinking I s'pose but I would have thought that there would be some kind of regulation, can't find anything on the FSA website.

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Niecie · 10/09/2007 11:22

The more I think about this the more I am wondering if it is even legal, let along ethical. It sounds like some sort of con/fraud but I am sure your grandmother won't want to feel she is being conned so I really don't know how you deal with it.

Is it making too big a deal to check it out with a solicitor? Is that making a mountain out of a molehill?

Sorry if it is a bit OTT - but it is all a bit odd. Makes you wonder if he has done it before.

Niecie · 10/09/2007 11:23

Sorry a bit of a x post there. Maybe a passing solicitor will come along.

Original poster

Wisteria · 10/09/2007 11:25

I have a friend who is a solicitor so will ask her, she used to deal in probate. Have just remembered that dd's friends Mum is practicing FA too so she might know what I could do.

OP posts:

Original poster

Wisteria · 10/09/2007 11:28

think Willmouse is a solicitor and she doesn't think there's anything you can do so that's probably the answer.
I suppose we could contest it when it all comes to pass but we probably wouldn't get anywhere anyway.
I don't want to think badly of him as he is good to her (so she says) but I can't see what his motives for being nice to her are, other than financial ones.

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MrsPuddleduck · 10/09/2007 13:33

I have been looking on the FSA website but it is pretty heaving going.

I know solicitors can accept a gift in a client's Will - I have come accross this as well.

I was once sent to a client's house as she wanted to make amendments to her will and was given specific instructions to try and get her to change the cash gift she had decided to give to a former solicitor in the practice.

The lady involved was completely taken in by him and would not change the gift. There was nothing we could do about that either.

I would try and tip off the FSA anonomously (if that is possible) if you leave your name it will possibly get back to your grandmother and she probably wont thank you for it.

Sorry I can't be any more help - I really do feel for you.

Original poster

Wisteria · 10/09/2007 13:43

Thanks for your help Willmouse. It's so difficult as I don't want to interfere but hate the thought of him benefitting from her.
I think I will have to wait until the dreaded day comes. It's only money at the end of the day and he might turn out and surprise us by refusing to accept the legacy [hopeful emoticon]. If not I shall report him to the FSA (won't need to be anonymous then).

I wouldn't object to her leaving him a token something but it works out at a tenth of her estate which isn't huge anyway, and I just feel that she's been hoodwinked somewhat - oh well such is life - it would be better if you couldn't change your will after a certain age IMO.... people get so daft when very old!

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MrsPuddleduck · 10/09/2007 13:53

You never know, she may change her Will again yet!

In my experience it becomes a bit of a hobby with some 'old folk'!

I think that Solicitors, Doctors, Financial Advisors etc should be banned from accepting gifts from client's Wills as it is an obvious conflict of interest and an abuse of the relationship of trust.

Original poster

Wisteria · 10/09/2007 14:10

yes, t'is true she may but then she'd probably go and leave 25 shares to the window cleaner because he did the gutters for free one day or something!

The worst thing is she had made a perfectly reasonable will in 2003, then my Mother died (her daughter) so she was told she had to change it (she didn't, it would have been fine) and because I think she felt bereft, she made some very strange legacies. I would have thought her solicitor would have queried it a bit but I guess you are bound under a client autonomy kind of thing.

OP posts:

MrsPuddleduck · 10/09/2007 14:31

I have tried to 'kindly' explain to clients the effects of leaving such gifts but it usually makes no difference.

Just hope that she falls out with him!

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