Assessment of 'elective professionals' examined

The High Court has endorsed the Ombudsman's disdain for a 'tick box' approach to client classification and underscored that firms must conduct an 'adequate assessment' of investment experience, reports Denis O'Connor.

Denis O'Connoris a fellow of both the Institute of Chartered Accountants in England & Wales and the Chartered Institute of Securities and Investment. He was a member of the British Bankers' Association Money Laundering Committee from 2003-10 and a member of the Joint Money Laundering Steering Group's board and editorial panel between 2010 and 2016. He has been a frequent speaker at industry conferences on financial crime issues, both in the United Kingdom and abroad.

The High Court recently upheld a Financial Ombudsman Service decision that ruled against a firm, Linear Investments Ltd, following the submission of a complaint by a client, Professor Willcocks, that he was incorrectly assessed to be an 'elective professional' client - which caused him to incur substantial losses on high-risk investments. [1]