Advisers Own the Process, Clients Own the Decision

One of the most difficult questions in financial planning is:

What should an adviser do when a client wants to do something the adviser disagrees with?

Many advisers instinctively want to stop clients making what they believe are poor decisions. However, financial planning is not about controlling client behaviour.

Clients own the decision.

Advisers own the process.

That distinction is important.

Our job is to challenge assumptions, explore alternatives, explain risks and help clients understand the consequences of their choices. Once we have done that, the decision remains theirs.

The difficulty is that not all decisions are equal.

There are some decisions where, although we may disagree, we can understand the client's reasoning.

The decision may not be what we would choose personally. It may not even be considered best practice. However, if the client understands the trade-offs and the approach still aligns with their objectives, there may be a valid case for supporting them.

Then there are decisions that sit in a more difficult middle ground.

The adviser understands why the client wants to proceed but believes the decision conflicts with regulatory expectations, suitability standards or professional obligations. In these cases the insistent client process may provide a route forward, ensuring the risks have been clearly documented and understood.

Finally, there are situations where the client's proposed course of action is so reckless or inappropriate that continuing the relationship becomes difficult to justify.

An adviser cannot simply facilitate every decision a client wishes to make.

A professional adviser retains responsibilities of their own.

This is where professional judgement becomes more important than technical knowledge.

The real challenge is not deciding whether a client is right or wrong.

The challenge is determining where the boundary lies between:

• Supporting a client's informed choice.

• Documenting an insistent client decision.

• Walking away from the engagement.

The longer I work in financial planning, the more I believe there is no simple rulebook for these situations.

Instead, advisers must balance care, evidence, professional judgement, regulation and client autonomy.

That balance is uncomfortable.

But perhaps that discomfort is exactly where the value of professional advice lies.

Question for reflection

At what point does respecting a client's autonomy become inconsistent with your responsibilities as a professional adviser?