CeMAP FRE2 Ethics, Professional Standards & CPD question: manager to recommend the firm's in-house protection product

CeMAP FRE2Ethics, Professional Standards & CPD

Sophie, a member of a professional body, is told by her manager to recommend the firm's in-house protection product to every client, even where a panel product gives the same cover more cheaply. What is the most appropriate course of action?

A Follow the instruction, because the firm rather than the adviser is responsible for product choice
B Follow the instruction but tell clients privately that cheaper cover is available elsewhere
C Resign immediately and report the firm to a national newspaper
D Recommend on each client's needs and merits, and raise her concern about the instruction with compliance

Show the answer and explanation

Answer: D. Recommend on each client's needs and merits, and raise her concern about the instruction with compliance

Sophie's own obligations under individual Conduct Rules 4 and 6 (COCON 2.1) and her professional code require her to put clients' interests first, and the Consumer Duty price and value outcome applies to the firm (PRIN 2A.4). Raising the concern internally gives the firm the chance to correct it; if it does not, whistleblowing routes exist. Following the instruction, even with a private warning, still delivers the worse deal, and going to the press first skips proper channels.

Common mistake

Thinking an instruction from a manager transfers ethical responsibility.

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Original practice material mapped to the published CeMAP FRE2 learning outcomes. Independent, not endorsed by Walbrook (formerly LIBF). Verify figures and rules against current guidance before relying on them.