Trust in financial planning is at an all-time low. Scandals like the recent £2m fraud case involving Nexus IFA only deepen the public’s cynicism. But let’s be honest—this isn’t a one-off. It’s a symptom of a broken system that blurs the lines between advice and sales, leaving consumers vulnerable.
The solution? A financial planning profession that isn’t compromised by product sales.
Why Mixing Advice with Product Sales is a Disaster Waiting to Happen
Imagine you walk into a doctor’s office, and instead of prescribing the best treatment, they get paid a commission to push a certain drug. Would you trust their advice? Of course not.
So why do we accept it in financial planning?
Right now, many so-called financial planners are also financial intermediaries—getting paid by the very products they recommend. That’s not advice; that’s sales. And it creates a massive conflict of interest.
When the System Fails: The Nexus IFA Scandal
Take the case of Kerry Nelson, director of Nexus Independent Financial Advisers and Nexus Investment Managers, who, along with Jacqueline Stephens, allegedly defrauded clients out of £2m between 2019 and 2023.
According to the Financial Conduct Authority (FCA), they forged documents, diverted client money, and used false paperwork—all while operating under the banner of “independent financial advice.”
Nelson even faces a money laundering charge, with funds allegedly siphoned off to fund her “extravagant lifestyle.”
Let’s be clear: this isn’t just about individual wrongdoing. It’s about a system that allows bad actors to thrive.
A Simple Fix: Financial Planning Should Be Separate from Product Sales
If we want to restore trust in financial planning, we need to create blue water between financial planners and those managing wealth. Here’s what that means:
✔ Financial planners should NOT sell products. Their job is to help clients plan their lives, not push investments.
✔ Fees should come from the client, not the product. That’s how you ensure planners work for the client—not for fund managers, insurers, or banks.
✔ Financial intermediaries should focus purely on execution. If a client needs a product, they should get it from a separate firm—not from the same person advising them.
This model exists elsewhere. It’s how things work in professions like law and medicine. So why not financial planning?
The Path Forward
The FCA says it wants to speed up enforcement—but that’s like fixing potholes instead of building better roads. We don’t just need faster penalties for bad actors; we need to redesign the system so they can’t operate in the first place.
It’s time for the industry to step up. True financial planning is about guiding clients to financial security—not selling them a product.
If we want to rebuild trust, we need to do more than just punish fraud—we need to change the way financial planning works.
What do you think? Should financial planners be banned from selling products? Let’s get the conversation started.
Academy of Life Planning 