Handling Client Requests That Go Against An Advisor's Recommendations, With Shelitha Smodic

The gist

1. Listen to the client's concern first and educate second, without immediately dismissing their request as wrong.
2. Clarify exactly what the client is asking, including which accounts, which securities, and whether they want your opinion or have already decided.
3. Document the conversation with notes or signed acknowledgments stating the action was taken against your recommendation, in case the client later has regrets.
4. Recurring conflicts can prompt a range of responses, from revisiting the investment policy statement to shifting authority or resigning the relationship entirely.