During a second meeting with a client, another advisor interrupts and suggests moving assets to his broker-dealer. What is the appropriate action for the CFP certificant?

During a second meeting with a client, another advisor interrupts and suggests moving assets to his broker-dealer. What is the appropriate action for the CFP certificant?

• A. Terminate the relationship
• B. Try to work with him
• C. Ask him to leave the room, he is not the client
• D. Try to figure out if there is any real scope of engagement to continue to advise Abby.

Answer: (D)

Handling third-party pressure begins with confirming the actual engagement and the client’s wishes before acting. The best move is to determine whether there is a real scope of engagement to continue advising Abby. This means checking the terms of the engagement, whether the client has authorized the other advisor in any capacity, and what the client wants to do going forward. Only after clarifying the engagement and the client’s intent should you decide how to proceed, ensuring you act in the client’s best interest and avoid being steered by another advisor’s agenda. Prematurely terminating the relationship, trying to accommodate the other adviser without client authorization, or simply asking the other adviser to leave the room doesn’t address whether there is an ongoing, client-approved advisory relationship and can undermine fiduciary duties.

Handling third-party pressure begins with confirming the actual engagement and the client’s wishes before acting. The best move is to determine whether there is a real scope of engagement to continue advising Abby. This means checking the terms of the engagement, whether the client has authorized the other advisor in any capacity, and what the client wants to do going forward. Only after clarifying the engagement and the client’s intent should you decide how to proceed, ensuring you act in the client’s best interest and avoid being steered by another advisor’s agenda. Prematurely terminating the relationship, trying to accommodate the other adviser without client authorization, or simply asking the other adviser to leave the room doesn’t address whether there is an ongoing, client-approved advisory relationship and can undermine fiduciary duties.