7 mistakes deputies make by failing to get an expert, independent second opinion on their clients investments
Lack of clarity about their precise legal obligations when it comes to managing client investments.
Believing that if they use an FCA regulated investment adviser, they face no further potential legal or financial liability when it comes to their client's investments.
Ignorance of counsel's guidance about the practical steps they need to take when managing clients investments so as to make sure they are fulfilling their legal duty of care.
Not acknowledging and accepting their own lack of investment expertise and that their professional speciality is the law and not investment. Consequently they make investment decisions on the basis of instinct and personal relationships whilst not also taking into account the hard facts and key technical criteria. "A little knowledge can be a dangerous thing."
Ignorance of the brewing scandal around 'closet tracker' funds and their clients' potential exposure to these highly questionable investments which are endemic amongst UK funds and which potentially face legal and regulatory action.
Once they are made aware of the 'closet tracker' fund issue, naively believing that if they are invested in these funds for their clients, their investment managers will put their hands up willingly and own up to having these funds in their client portfolios.
Unaware or oblivious of the Office of Public Guardian's increasing scrutiny of all investment fees and charges which many times far exceed deputies' own professional costs. Unable to provide written evidence on file that they have ticked all the legal and investment boxes when it comes to their clients' investments.
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