Vulnerability

Dealing with all things financial can be daunting even for the savviest of us. The rules, regulations and all the financial jargon that comes with it can be hard to comprehend but, if you are considered a vulnerable person, it can make understanding things so much more difficult. The concern with vulnerability is that if someone is struggling to represent their own interests, decisions made during this phase could potentially be detrimental with irreversible long-term effects.

Research suggests that up to 50 per cent of UK adults are financially vulnerable at any one time

Vulnerability is not always what you think. Right now, you might be picturing someone elderly and frail as a typical vulnerable person when, actually, everyone will experience vulnerability at various points in their lifetime. This can be hard to identify, especially as you may not even realise that you are vulnerable at the time.   

At BFP, caring for vulnerable clients is embedded in our culture. We are always on alert for the signs and are continually planning how to service these types of clients better.

How we define and identify ‘Vulnerability’

The FCA’s definition of a vulnerable client is ‘someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care’.

Vulnerability could arise because of:

·       Health: mental or physical conditions that affect the ability to carry out day to day tasks

·       Resilience: a low ability to withstand financial and emotional shocks

·       Capability: low knowledge or confidence in financial matters

·       Major Life events: for example, being made redundant, divorce or a relationship breakdown

Vulnerability can be temporary, permanent or sporadic and can affect us all. Additionally, not everyone going through a situation mentioned above is automatically considered vulnerable.

What we do to help:

We endeavor to make sure that, in all cases, a client has the capacity to understand the advice they are being given.  If they don’t, and there is no one with a Power of Attorney in place enabling a trusted person to act on their behalf, the advice process will be put on hold.  If we identify an existing client who is becoming vulnerable, we will discuss as a team and agree a strategy.

With all clients, our approach involves avoiding jargon, listening carefully and holding meetings in accessible locations. We endeavor to go above and beyond to support our clients beyond the usual financial planning process. We understand that some people may not wish to turn to friends or family for help and so here are a few examples of the things we regularly help our clients with:

·       Technology: we feel that, sometimes, technology moves faster than we do. This can create a barrier for clients in carrying out simple tasks such as completing a bank transfer, opening an account or trying to contact a provider. We’re here to help whether it’s using our own contacts to look up the number you need or talking you through the task itself.

·       Practicalities: we’re here to suggest practical solutions that can provide peace of mind. This could be something like suggesting a fireproof bag from Amazon to help keep your Will safe at home.  

·       Post, paperwork, emails etc: If clients receive a letter or communication that they’re not sure about, we encourage them to forward it to us so that we can provide guidance or even step in and action anything required if necessary.

·       Scams: We are always on alert when it comes to the latest scams that are circulating and regularly notify our clients of this via email and social media. Equally, clients can pick up the phone to ask us about any worrying communication they’ve received.

·       Transparency: We always aim to set out any correspondence in a clear manner and avoid financial jargon where possible, whether it is setting out costs, summarising the main points of any correspondence in a summary letter or offering larger print if necessary. We always encourage our clients to approach us with any questions they may have and we will always offer a follow up phone call to make sure the client is content with what they have received.

At every stage of the planning process and services we provide at BFP, we look at how we can best meet the needs of our vulnerable clients. We continually aim to improve our own knowledge and skill set on this subject as we are passionate about providing the best possible outcomes for our clients. The consequences for harm arising from vulnerability can be great and lead to life-changing psychological and financial impacts. We’re here to support you to prevent this from happening and be your trusted independent sounding board for whatever the future may bring.