Protecting consumers from “mezzanine” investment products could be achieved through disclaimers accepting liability for financial planning recommendations, a top financial group has suggested.

Robbie Bennetts, head of Professional Investment Services, says waivers could protect investors from themselves and also partly shield planners from costly professional indemnity suits.

Mr Bennetts floated the idea at a recent gathering of financial planning and investment groups in Sydney, saying the waiver could be applied once a percentage of an investment portfolio reached a “tipping point” in one class.

“This is about trying to protect the public,” he said. ‘If clients insist they have to have all their assets in one class, whether it be one of those mezzanine ones in the paper, if they want more than 80% in one asset class it would be compulsory for the client to sign a waiver saying it’s a very aggressive strategy.

“It would provide some in-built protection for the client. You can’t guarantee it 100% of the time, but the majority of people would then take another look.”

Mr Bennetts says a waiver would provide some protection for financial planners but would not remove liability altogether.

“We cannot get rid of our obligations as a financial planning group. But it would be harder for the client to come back and say ‘I’m Mr Conservative’.”

Mr Bennetts says investors seeking high returns with limited funds often pressure planners to adopt more high-risk strategies. The waiver would be a mechanism to protect both parties from financial loss.

Professional Investments Services was involved in recommending Westpoint shares to its clients, although only a minority of its 1400 planners suggested the now-defunct property group as an investment vehicle.