One of the critical factors in enabling our clients to seek advice and take the steps needed, is for us as an industry to demonstrate how we can help and not to put barriers in the way or appear as though we might ‘judge’ people for getting into difficulty.
It is important to make that clear, as so many clients will be experiencing mental health difficulties because they are in a situation they have never experienced before, and struggling financially can often be a difficult subject to discuss.
Your clients may not have recognised the symptoms but may be struggling to know what to do.
These could be feelings such as ‘not being able to cope’ with simple household admin, or feeling that bills and expenses are getting on top of them; not being able to sleep, or sleeping too much; getting emotional – such as being angry or sad or tearful – sometimes at the smallest things.
These are some of the first signs of vulnerability we as an industry have been grappling with for years.
There is unlikely to be a more important time to recognise this and to ensure they get the right financial help at the right time.
So debt advice, such as the steps set out below by Stepchange, will be critical to signpost.
Mortgage advice
For those with mortgages, it is already clear that good quality mortgage advice and talking to someone who understands what the financial institutions and government are offering in support is crucial.
But clients are likely to need more than just help with their mortgage and the immediate cashflow issues.
For those who are in financial distress, acting with kindness with due attention to their needs and vulnerabilities is the key.
For those who wish to raise funds for their family, or to protect their retirements, the need to ensure they are not acting under duress, but out of sympathy and loyalty to their families, and with sound rationale, is critical in reaching the right solutions.
Those solutions may be taking out equity release, or not, or changing their investment approach – what’s important is they’ve taken good advice from somebody who can really understand and look after their needs.
The financial landscape has changed significantly in a very short space of time and it is uncertain how long this will be prolonged.
As an adviser community, it is important that we act with honesty and integrity to help our clients recognise their financial symptoms and troubles, so that the right qualified adviser can advise them and prescribe the most effective treatment.
John Somerville is head of regulatory relationships at The London Institute of Banking and Finance
