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If the recommendations of the Ripoll Inquiry are adopted it will become easier for clients to make claims against their advisers, according to corporate lawyer Peter Townsend.
He added that at the moment clients can only instigate litigation if they believe the advice they have received is unsatisfactory — that is, if an inappropriate product has been recommended, if the adviser has been incompetent or if there has been ineffective disclosure.
Townsend said that while it is currently difficult for clients to make claims against their advisers, the Ripoll proposals will place the burden of proof squarely upon advisers.
Townsend warned that if the Government adopts the changes, dealer groups will have to ensure that the client’s expectations and the adviser’s remuneration are both carefully laid out in the client contract.
