A Scottish Life‘s sale consultant in an apparent creativity impulse has sent an e-mail on “Christmas money making opportunity” to more than two dozen financial advisers – reports Financial Times. Now Scottish life, a business of Royal London Group that specializes in pensions, has to review its compliance procedures. The e-mail, that suggested IFAs to transfer pensions of their existing customers towards Scottish Life was sent by the sales consultant directly, without compliance approval. However, Scottish Life seems to be concerned more about the tone of the message, and not a dangerous attempt to encourage IFAs to trade the pensions of their customers for a Christmas gift.
“We do not condone that sort of language at all and clearly the tone is wrong,”
– said to FT Mr. Gareth Evans of Scottish Life.
As Financial Times reports this other part of the incident was interesting to the Financial Conduct Authority.
“We take a very dim view of churning and unsuitable switching, be it by an IFA or by a provider encouraging an IFA. Investment transactions should only be recommended when they are in the best interests of the clients, and that means properly assessing their suitability.”
We often talk about empowerment of the employees and allowing them to use digital channels. This example shows, that any such empowerment should be allowed only after setting up proper compliance policy and trainings.