What should an advisor do if a client refuses to sign a waiver for a transaction?

When a client refuses to sign a waiver for a transaction, the advisor should prioritize the legal and ethical implications surrounding that refusal. Not proceeding with the transaction is the correct course of action because a waiver typically indicates that the client acknowledges certain risks associated with the transaction. Without this acknowledgment, the advisor cannot ensure that the client is fully informed and protected under relevant regulations.

Continuing with the transaction without a signed waiver could expose the advisor and the financial institution to potential liability if something goes wrong. This practice could violate compliance standards and put both the client and the advisor at risk. Therefore, maintaining a clear boundary by not proceeding with the transaction aligns with best practices in financial advising, as it respects the client's decision-making autonomy while also safeguarding the advisor's professional integrity and the firm's compliance obligations.

Delaying the transaction might seem like a viable alternative, but without the client’s consent via the signed waiver, the situation remains unresolved. Walking away from the client might not address the underlying issues and could lead to lost opportunities without clear communication. In this scenario, prioritizing compliance and prudent client care dictates that the transaction should not proceed.