Why solicitors may hesitate to work with financial planners (and why you might want to reconsider) (sponsored content)
Recognising when your client needs to be referred for complementary financial guidance should be a hallmark of ethical best practice. It is something that your regulator would anticipate you doing and as it aligns with the core SRA Code of Conduct Principle: to “act in the best interests of each client.” Yet, despite this duty, many solicitors hesitate to collaborate with financial planners—even when doing so could significantly benefit the client and your relationship with them.
Below are some common reasons we hear why solicitors might avoid working with and referring to financial planners, each followed by an example that you may well relate to —and a gentle nudge to reconsider.
“It’s too complicated to build a referral relationship.”
Time pressures and uncertainty can be barriers.
Example: A solicitor avoids even a discovery meeting with a financial planner, missing out on a steady stream of cross-referrals from a fellow professional working with clients needing Wills, LPAs, probate services, and more.
“I don’t want to be responsible if something goes wrong.”
Despite financial planners being regulated and carrying their own liability, solicitors may fear reputational risk.
Example: A solicitor fears liability from referring to a financial planning firm, even though they are regulated by the Financial Conduct Authority and carry their own indemnity cover. Yet, they could face questions from clients’ families about why financial advice wasn’t pursued when clearly needed.
“I’ve had a bad experience once.”
One poor interaction can shape future decisions.
Example: A solicitor once worked with a financial planner who gave poor advice. Since then, they’ve avoided collaboration. Meanwhile, reputable Chartered Financial Planners are helping other solicitors deliver joined-up, client-centric advice.
“Financial advisers just sell products.”
Outdated stereotypes persist, despite financial planners being fee-based professionals offering holistic advice for over a decade.
Example: A solicitor declines to refer a client, fearing a sales pitch. In reality, the planner could help consolidate pensions, update nominations, and plan for care costs—none of which necessarily involve selling products.
“I don’t have time to build partnerships.”
Busy schedules can make collaboration seem unmanageable.
Example: A solicitor swamped with probate cases doesn’t realise that working with a financial planner—or having a panel of advisory firms—could help clients manage inherited wealth, reduce tax burdens, and generate new business through referrals.
“I don’t want to share my client.”
It may feel easier to retain control and avoid coordination.
Example: A solicitor handles a complex estate alone. Later, the client’s children discover missed investment and tax planning opportunities—oversights that collaboration could have prevented.
“I’m not convinced it adds value.”
Combining legal and financial planning improves client outcomes, but stepping outside your comfort zone can be hard.
Example: A solicitor handles a will for a client with multiple pensions. Without a financial professional involved, the client’s family struggles to locate all the pension plans after death. Had the solicitor referred them earlier, the financial planner could have streamlined the process, avoided delays and ensured new IHT liabilities were identified and planned for.
A Final Thought
These concerns may feel valid, they often stem from misconceptions or missed opportunities. Collaborating with trustworthy financial planning partners can enhance service delivery, strengthen client relationships, and integrate legal advice into a broader strategy.
If you’re the COLP or part of your firm’s management team, consider your obligations under the SRA Firm Code of Conduct – Compliance and Business Systems 2.1:
“You must have effective governance structures, arrangements, systems and controls in place.”
Referral to third parties is part of your process. Best practice includes overseeing due diligence on referral partners. As the COLP responsible for supervision, take the initiative to create a strategy that supports your lawyers—leveraging the expertise of reliable financial planning partners.
We strongly suggest reaching out to your SIFA Professional member. They can help meet your regulator’s expectations and act as a “safe pair of hands” for your clients, helping to overcome barriers to effective collaboration.
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