Examination Timing: 00H00M53S
You represent an elderly client regarding estate planning, drafting a will, and minimising likely Inheritance Tax costs. As you are not authorised by the FCA, you refer the client to an independent financial adviser (IFA), although you have knowledge and experience of investment options.
If an IFA recommends a particular investment on behalf of a client, which of the following best describes your duties towards the client?
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Your selected option: B
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According to mandatory principle 4 of the SRA Code of Conduct, you must always act in the client's best interests. Referring the client to a competent IFA generally meets this requirement. However, you still have a duty to warn the client against unsuitable investments, even if recommended by an independent broker. Options B and D are incorrect because your duty to act in the client's best interests persists. Option C is incorrect because you must review the advice given by any advisor, not just tied agents. Option E is incorrect as IFAs can recommend investments.
Key Point: This question evaluates the understanding of a solicitor's duties under the SRA Code of Conduct when referring clients to independent financial advisers and ensuring the suitability of recommended investments.
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