'Nature of retirement and later life advice is at a tipping point'

Speaking to FT Adviser, Berry discussed the launch of new service My Care Hub, which she called the UKs first ‘one stop shop’ for adult social care advice. 

The online platform, launched today (April 11) can be used by advisers to meet regulatory expectations relating to consumer duty and vulnerability, including the avoidance of foreseeable harm and the pursuit of the wider financial objectives of their clients.

The aim is to bring enable the financial advice sector to help people become better informed and supported when navigating care systems across the UK. 

Unpaid carers and those who need care will make up the biggest group of vulnerable clients for advisers Jacqueline Berry, My Care Consultant

Berry said: “With the publication of the FCA’s final guidance for consumer duty, it became obvious that the advice sector would need to address the specific needs of unpaid carers as well as those in need of care, both in terms of the crosscutting rules and the four outcomes.

"Research has consistently highlighted the unpaid carers cohort and people that need care themselves, will make up the biggest group of vulnerable clients that many advice firms have, regardless of whether the adviser is aware of whom these clients are and to whom these circumstances apply.”

Caring responsibility is listed as a driver of vulnerability by the the FCA. 

The hub will consist of three sections designed to help users plan for the future. 

The first section will cover understanding lasting powers of attorney, wills, and mental capacity in the relevance of next of kin as well as unhealthy ageing linked to cognitive illnesses such as dementia.

The second and third sections will be dedicated to providing information for both parents and those in need of care and will cover how to access practical and financial support and links to other support services. 

Consumer Duty 

Berry said the drivers behind creating My Care Hub were the introduction of the FCA’s consumer duty and approach to vulnerability, the changing nature of advice and the Carers Leave Act 2023.

My Care hub is an essential part of a firm's risk management process aligned to the consumer duty Jacqueline Berry, My Care Consultant

My Care Hub is fully aligned to the consumer communications and support outcomes of the consumer duty, according to Berry.

Advisers will be able to choose whether they want to charge their clients a nominal rate fee for accessing My Care Hub for 12 months or whether clients can access it for free.

Berry said: “My Care hub is an essential part of a firm's risk management process aligned to the consumer duty cross cutting rules of avoiding foreseeable harm and enabling clients to pursue their wider financial objectives. 

“The consumer duty cross cutting rules are fundamentally about risk management and the lack of holistic joined up care advice can significantly increase the risks of non compliance with the cross cutting rules.

"My Care Hub has been designed to essentially avoid those potential foreseeable harms for consumers and de-risk a financial advice firm's business.

“One of the key features of the hub is it can provide regular management information to the advice firm so they can see which clients have signed up, what their activity is and what their outcomes are from using the hub. The firm can then evidence that and log that against their consumer duty requirements.”

Adviser engagement 

Berry believed there would be positive engagement amongst advisers with the platform because all advisers will have clients who care for family members or need care themselves.

“We have got an expression of interest list which has crept up to nearly 500 firms in size, who have said, we want to be told when this launches and we want to be given the first opportunity to sign up," she said. 

“This is because what sits in the background of this resource is real people in my team ready to provide a dedicated email and telephone support service to users of My Care Hub, many of whom will get what they need from the guided information, but some might want to submit questions about their situation or want support using the site while others might want to book a one-to-one consultation with the team which is chargeable."

Berry said My Care Hub will give advisers the opportunity to run an automated care referral system.

 The feedback from firms is most, unless you're a care advice specialist, don't understand this area. Jacqueline Berry, My Care Consultant 

Berry said the resource was also “perfectly placed” to help firms develop their relationships with professional connections and corporate clients. 

She said: “This is really our solution in response to the regulator's calling for firms to essentially have a service that taps into the consumer duty and vulnerability regulations. 

“The feedback from firms is most, unless you're a care advice specialist, don't understand this area. They don't necessarily have the time or the expertise to deliver a service in house. And for me this is about de-risking a business and this could really change the face of the nature of advice across the UK.

“Creating more of a holistic feel across the whole of retirement advice that doesn't just look at cash flow planning in retirement but also factors in the very likely need of care in later life and what that looks like and actually building that into the cash flow plan.”

Berry added that the changing nature of advice is at a tipping point and My Care Hub will allow advisers to have a more holistic approach. 

“The conversations we have with advisers suggest that retirement discussions with clients are increasingly becoming more holistic and this product is essentially for them to fulfil that across the whole retirement timeline,” she said.

alina.khan@ft.com