"Advisers must be confident that they are not just able to recognise vulnerable clients, but also that they are fully equipped on how to communicate with them "
53% of respondents deemed only 1-10% of their past clients as vulnerable and just 17% think it is easy to spot a vulnerable client.
When asked how they determined whether a client was vulnerable or not, 87% surveyed said they enquired about a client’s personal circumstances and 82% said they tested customers on their understanding of the products on offer.
When asked about spotting the signs of vulnerability, 91% of advisers cited mental ill-health as the biggest risk factor they looked out for, followed by low literacy, numeracy and financial capability (88%).
56% of advisers recognised that significant financial worries might also make a customer vulnerable. The FCA’s Future Approach to Consumers report picked up on a similar point, highlighting that a lack of financial resilience was the highest indicator for a person’s vulnerability accounting for 30% of the adults surveyed.
Physical ailments were also deemed highly as signs of vulnerability in the more 2 life survey, with 80% of advisers citing the onset of illness as one, and 76% citing severe or long-term medical conditions as another.
When asked how to deal with vulnerable clients, 89% of advisers said it was especially important to recognise that a client may be vulnerable – even if they don’t realise it themselves, whilst 84% thought it was important to engage with those closest to the client, such as relatives, carers or lawyers. 79% said that recording all of a client’s communication and service needs should be prioritised to ensure that both client and the firm are protected.
Stuart Wilson, corporate marketing director at more 2 life, commented: “Whilst the majority of equity release advisers confirmed in our research that they were proactive in determining whether a customer was vulnerable or not, there is a clear demand for more education and resources to be provided.
"Advisers must be confident that they are not just able to recognise vulnerable clients, but also that they are fully equipped on how to communicate with them and manage their needs accordingly.”
