PensionsSep 21 2017

How to work with professional peers over vulnerability

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How to work with professional peers over vulnerability

This is according to Stephen Lowe, group communications director for Just Group, who explains this necessitates regular discussion with other third parties.

He continues: “This needs to consider the role of third parties who are often involved, such as the relatives, carers, attorneys and deputies, as well as professionals such as lawyers.

“In a country with an ageing population, the later life market is growing, and firms need to decide whether it is a business priority or should be referred to a trusted third party.”

Proper communication

Making sure there is proper communication is vital, as well as ensuring safe and secure sharing of relevant information, where permitted under data protection legislation, is important.

It is important the client and anyone involved in their support are fully aware of the implications of each professional’s action. Claire Trott

According to Tony Gammon, director and head of client services for Thesis Asset Management: “If working with other professionals, ensure they are briefed properly.

“Allow extra time for meetings and make sure you are both straightforward, allowing the client plenty of ‘thinking time’.”

Jacqueline Berry, director of My Care Consultant, says this is important especially for those in later life, as only 7 per cent of all long-term-care self-funders tend to seek appropriate and regulated, qualified advice. 

“With people being encouraged to approach the local authority for information, advice and support, there is a real and growing need for a link between information and advice in the provision of care, as well as unregulated and regulated financial advice.”

Claire Trott, head of pensions strategy for Technical Connection, says: “If clients are vulnerable, it is key that all their advisers, in each area, are acting in the same way.

“It is important the client and anyone involved in their support are fully aware of the implications of each professional’s action.”

Mr Gammon adds: “Other financial professionals should have a vulnerable clients policy and similar concerns.”

For example, the Law Society also issued a paper on vulnerable clients in 2015. 

At the time, the Law Society stated: “Some clients have difficulty accessing and using legal services. 

“Research has concluded that solicitors need to adapt their practices to identify and meet the needs of vulnerable clients.”

According to the Law Society, some 9 per cent of a law firm’s client base might be categorised as ‘vulnerable’. When it comes to dealing with vulnerable situations – divorce, death, bereavement –speaking openly with the client’s legal advisers will be beneficial to the client and the wider family.

Speaking with legal professionals can also help with will writing, probate and services involving a deputy or someone with the power of attorney.

Keith Richards, chief executive of the Personal Finance Society, comments: “Given the dynamic and highly personal nature of vulnerability, advisers may or may not need the help of professionals when it comes to dealing with individual vulnerable clients.”

Where the need does exist, Mr Richards highlights some typical professional connections: 

  • Solicitors – such as working with advisers to help establish mental capacity.
  • GPs or other suitably qualified medical professionals.
  • Care advisers – to meet client needs in respect of those aspects of care advice not regulated or linked to paying for care (where qualified financial advisers’ expertise sits).
  • Divorce lawyers – to help with the financial aspects of divorce settlements.
  • Property management companies. 
  • Other organisations that can help with aspects of communication, such as the Plain English Campaign.

“In addition to professionals,” Mr Richards adds, “advisers dealing with vulnerable clients will typically come into greater contact with family members, representatives, carers, attorneys and deputies.

“An understanding of roles, responsibilities and good practice in terms of dealing with these third parties is part and parcel of firms ensuring vulnerable clients get the best possible advice, leading to good client outcomes.”

Claire Barker, managing director of Equilaw, comments: “Advisers can work with solicitors, mental health and other medical professionals to ensure the client’s best interests are always met, based on a full assessment of all of the relevant circumstances at that time.”

To do so requires full communication and proper, legal authority to disclose certain conditions.

Ms Trott advises: “It is wise to ensure authority is available between all parties, so information can be passed directly to the appropriate person or firm, to make sure all angles are covered and information is not lost because of a possible lack of understanding.”

Other financial providers

Advisers doing investment or pension planning might also need to consider the whole of a potentially vulnerable client’s financial situation.

This might involve speaking with the bank in the case of potential debts and liabilities, or with insurance companies. 

Indeed, making sure clients have proper insurance in place to protect them at times of future vulnerability is a key focus for many advisers.

Nick Telfer, product and marketing director for British Friendly, comments: “When considering vulnerable clients, advisers need to remember it is not just the client himself or herself who can suffer ill health and disability.

“It can happen to their family members too, which can seriously affect someone’s ability to work if they have to look after them.”

Then there is the question of any financial complication, such as an equity release plan, to consider with certain clients, especially those in later life.

Just Group’s Mr Lowe outlines: “Where additional external support is required to deal with a specialist area such as equity release or care fees planning, advisers should consider building connections to specialists with the deep knowledge and experience [needed].

“This will ensure the vulnerable client receives the high level of service advisers demand for them.”

simoney.kyriakou@ft.com