TITLE

Mitigating Your Exposure from Spousal Client Flareups

AUTHOR(S)
Vessenes, Katherine
PUB. DATE
February 1996
SOURCE
Journal of Financial Planning;Feb1996, Vol. 9 Issue 1, p16
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article provides investment consultation on spousal client flare-ups. There are five basic issues that come into play with this situation: representation versus advising; identifying the client; conflicting duties; securities violations; and confidentiality. Many planners mistakenly believe they have to "represent" their clients. Both clients remain as satisfied clients, it's not impossible to reach this result, but it won't be easy, either, but this is the best case. This case is one where an ounce of prevention is worth many pounds in legal fees. Before this happens to one, he/she must tighten up agreements so they won't have to face this situation. They must tell new spousal clients up front that they consider them as one unit and that information will be shared. It does not take much imagination to see that a planner could possibly recommend an unregistered security chat is not on the broker/dealer's approved list, thereby "selling away" and violating other security regulations. Avoid this situation at all costs. Having the client sue one may be the least of his/her problems if they are prosecuted for securities crimes.
ACCESSION #
5560025

 

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