Are life advisers expected to recommend the ‘best’ product?
“Advisers must recommend the best product” is a sentiment I often hear while discussing what I believe are weaknesses in advice allowing clients to make ‘convenient’ complaints in the future.
I was on a panel at the past FSC conference in September 2024 where I raised the issue of advisers believing the law requires them to exclusively sell the ‘best’ product, as rated by independent services, and how that might actually be against client’s best interests. I urged the FMA and Disputes Resolution Services to debunk that view.
Here is my opinion. First, we must consider what ‘best’ product means? Is it:
- The least expensive product of the type (Life, Trauma, Income Protection, etc)?
- The best product of the type as rated by a product rating service?
- The product that provides the greatest number of benefits?
- The product that best suits the specific client’s needs?
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