In the work you do, one of the most challenging dynamics is when clients attempt to dictate investment decisions. It’s an experience that most financial professionals are familiar with; a client walks in, full of confidence, and insists on a particular strategy, stock, or investment product. It’s akin to a patient walking into a doctor’s office and telling the doctor what medication they should prescribe. As absurd as this sounds, it’s a common occurrence in our industry. And if not handled correctly, it can be detrimental to both the client and you.

The Dilemma of Client Control

You are a trained professional. You undergo rigorous education, licensing, and ongoing professional development to master the intricacies of financial markets and planning. Despite this, many clients believe they know better. Perhaps it’s the information overload in today’s digital age. A quick search on the internet can make anyone feel like an expert. But as you know, surface-level information and a few headline numbers do not constitute financial expertise.

For many clients, the desire to control their financial decisions stems from a place of fear or insecurity. They’ve either had negative experiences in the past or are overwhelmed by the uncertainty of markets. When emotions are high, clients might feel that they must take matters into their own hands. In their minds, taking action—any action—feels better than sitting back and trusting someone else.

But here’s the truth: when clients start prescribing their own financial medicine, they often do more harm than good. Many don’t realize the complexities behind the decisions you make. They don’t see the layers of analysis, the diversification strategies, the risk assessments, and the careful balancing of short-term needs with long-term goals. Financial professionals don’t just react to the present; they plan for the future. And that’s something clients often overlook. 

The Cost of Allowing Client Control

When you give in to client demands, it can set a dangerous precedent. Allowing clients to dictate investment strategies, especially when those strategies conflict with sound financial principles, opens the door to future problems. If the market turns against the client’s choice, they may blame you for not stopping them. Conversely, if things go well, they may feel even more emboldened to continue overriding professional guidance. In both cases, you lose control of the client relationship.

You must remember that you are hired for your expertise. Allowing clients to control the investment process dilutes your value and diminishes your authority. You become a mere order-taker rather than the strategic partner your clients need. Over time, this dynamic erodes trust, and your ability to provide meaningful guidance becomes limited.

What Should You Do?

So, how should you handle situations where clients want to take control? How do you manage these challenging dynamics while maintaining professionalism and ensuring the best outcomes for your clients?

1. Set Clear Expectations Early On

From the very beginning of the relationship, you must set clear boundaries and expectations. Clients need to understand that while their input is valuable, they are hiring a professional for a reason. You should explain your process (or better yet get them to experience it), the work behind their recommendations, and the importance of a long-term strategy. When clients understand that your role is not to react to short-term whims but to plan for sustained, long-term growth, they are more likely to trust their expertise.

2. Educate, Don’t Dictate

When clients push back or insist on a particular approach, use it as an opportunity for education. Instead of outright rejecting their suggestions, take the time to explain why their preferred strategy might not be suitable. Show them the data. Walk them through past market scenarios where similar strategies failed. By educating clients rather than simply telling them they’re wrong, you can build credibility and deepen trust.

Additionally, you should provide a balanced view. It’s important to show that your process isn’t just based on avoiding risk but also on maximizing opportunities. When clients see that you are actively looking out for their best interests—beyond just safeguarding wealth—they are more likely to appreciate the value of professional guidance.

3. Communicate Regularly and Proactively

One reason clients try to take control is a lack of communication. When they don’t hear from you often, they may feel neglected or assume that you aren’t actively managing their investments. To counter this, you must maintain open lines of communication. Regular updates, insights, and progress reports can help reassure clients that you are engaged and proactive.

By being the first to communicate, especially during volatile market periods, you can pre-emptively address concerns before clients feel the need to step in. It’s crucial to remember that clients want to feel secure and in control of their financial future. Proactive communication is a powerful tool in ensuring they feel that way without taking matters into their own hands.

4. Empathy and Active Listening

When clients feel anxious or insist on a particular strategy, it’s often because they don’t feel heard. You must practice active listening. Understanding the underlying concerns—whether it’s fear of losing wealth, a desire for quick gains, or mistrust from past experiences—allows you to address the root cause.

Empathy goes a long way. Validating a client’s feelings and acknowledging their concerns creates a partnership dynamic. When clients feel you truly understand their perspective, they are more likely to listen and follow your counsel.

5. Establish a Decision-Making Framework

One effective way to keep clients involved but not overbearing is to establish a clear decision-making framework. For example, you can work with clients to define specific financial goals, risk tolerance levels, and time horizons. Then, when clients suggest changes or express concerns, you can refer back to this framework. This not only keeps decisions aligned with long-term objectives but also helps clients see the logic behind your recommendations.

6. Stand Firm When Necessary

There will be times when, despite all efforts, a client insists on taking an action that goes against sound financial guidance. In these moments, you must be prepared to stand firm. It’s essential to protect the integrity of the relationship and the client’s financial well-being, even if it means risking the relationship.

You can remind clients of the duty you hold and the responsibility to act in their best interests. If a client is determined to pursue a strategy that you believe is detrimental, it may be better to step back and reassess the relationship. You must prioritize your professional ethics and the long-term success of your clients above short-term appeasement.

7. Say NO

In our industry, saying “no” is often seen as difficult, especially when dealing with clients who want to dictate the direction of their investments. It’s even more difficult when the client has significant assets with you. However, learning to say “no” is essential if you aim to provide the best client experience and maintain your professional integrity. You are a specialist, and part of your role is to guide clients based on knowledge, experience, and evidence—not just to follow instructions.

When clients try to assert control or make impulsive demands, it’s critical for you to push back, even if it feels uncomfortable. Saying “no” is not about rejecting the client; it’s about protecting their interests. It’s about ensuring that emotional reactions or ill-informed decisions do not derail a well-thought-out plan. By setting boundaries and asserting your professional perspective, you demonstrate that you are not just there to take orders – you are there to add value, safeguard wealth, and lead with expertise.

Ultimately, your job is to uphold a client’s financial well-being, which sometimes means saying “no” to clients who don’t fully grasp the implications of their requests. By doing so, you reinforce your value and build a foundation of trust, ensuring long-term, successful relationships.

The Importance of Client Education and Trust

Ultimately, the key to navigating client control issues is trust. You must work diligently to build and maintain trust throughout the relationship. Trust is built through consistent, honest, and transparent communication. It’s also strengthened by demonstrating a commitment to the client’s best interests.

You should also invest time in client education. When clients understand your process, rationale behind certain strategies and that aligning their use of capital with what’s important to them is so important, they are less likely to override your professional guidance. Regularly hosting educational seminars and offering personalized sessions can help clients feel more informed and less compelled to take matters into their own hands.

In our work some clients attempting to take control of investment decisions is an ongoing challenge. But with the right approach, you can navigate these situations effectively. By setting clear expectations, educating clients, communicating proactively, standing firm when necessary, and saying NO, you can maintain your authority and provide the best possible outcomes for your clients.

The relationship between you and your client is a partnership. It requires trust, understanding, and mutual respect. When clients understand that your role is to protect and grow their wealth with professional expertise, they are more likely to let go of control and trust the process. For you, it’s about creating that trust and showing your clients, time and again, that they are in capable hands.