Your IndustryFeb 3 2020

How to help vulnerable clients

  • Identify different types of vulnerability
  • Describe the FCA's requirements of adviser towards vulnerable clients
  • Describe the 'Texas' outline for handling vulnerable clients
  • Identify different types of vulnerability
  • Describe the FCA's requirements of adviser towards vulnerable clients
  • Describe the 'Texas' outline for handling vulnerable clients
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CPD
Approx.30min
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CPD
Approx.30min
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CPD
Approx.30min
How to help vulnerable clients

The latest ‘Guidance for firms on the treatment of vulnerable customers’ published in July 2019 by the FCA makes it clear that they expect every employee of every regulated company to take seriously the fair treatment of all clients.

Fundamentally, the FCA wants the financial outcomes of vulnerable clients to be at least as good as those for other clients.

The guidance reads: “Ultimately, we want to see firms doing the right thing for vulnerable consumers, and embedding this in their culture.”

The FCA has been consulting on this issue with the industry for some time and expects to issue a formal response to the feedback it has received in the first half of this year.

But it is clear that it expects all firms to make efforts to understand the needs of vulnerable clients, to build the skills and capabilities of staff to deal with vulnerable clients effectively, and to design products, services and communication material that meets the needs of vulnerable clients.

It wants advisers to establish an ongoing strategy: to Develop, Monitor, Analyse and Learn.

Being alert

Any client you speak to could currently be going through a period of vulnerability. Be alert to the signs. Things to listen out for include clients:

  • Asking you to repeat things
  • Responding in an irrational way to simple questions
  • Asking irrelevant questions
  • Saying ‘yes’ when they clearly have not understood
  • Mentioning medication

Sometimes your client will mention that they are having mental health problems or that they have recently experienced a significant life event, such as a bereavement or medical diagnosis.

Note this information so that you and colleagues can plan how to service them better.

Remember, your job is just to recognise vulnerability – not diagnose it.

You do not need to know the exact causes. You have to concern yourself with the problems the client’s vulnerability creates for them. Think about their needs; recognise and adjust.

If you are worried about giving offence, talking about the effects of the vulnerability (that is, the difficulties the client has) and any extra support that is available, will help.

There are obvious other steps you can take to ensure you are addressing the needs of vulnerable clients.

These include speaking slowly, avoiding jargon, listening carefully, holding meetings in accessible locations and arranging meetings around the timing of medication to capture the client when most alert.

Deafness experts suggest that rather than speaking louder, try to speak lower – a lower voice is easier to hear and when we raise our voices we tend to raise the pitch too.

Techniques to consider

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