Headlines:
- There are difficulties with the regulator in this area as they want a 'tick box' approach but clients have varying needs and need more than a 'tick in the box'
- A firm's vulnerable client policy should not be just age related. There were examples of clients in their 50’s with dementia and others in their 90’s who were extremely capable
- If your decision is to treat the clients as vulnerable, your file should be documented as such
- Most clients have a concern about how they will pay for later life care
- A Green Paper on the Care Act 2014 will provide some clarity in this area
Key Issues and Challenges:
- Encourage the vulnerable client to have either a family member or a trusted adviser (solicitor or accountant) present at the meeting
- Assess if a client is vulnerable – four key questions: Satisfy yourself that the person understands the matters you are discussing. Does the client have the ability to mull over the facts? Can the client reach a conclusion? Can the client communicate that conclusion?
- If necessary, ask a medical practitioner if the client has capacity
- Appoint a family member to have the Lasting Power of Attorney (LPA) and the adviser should attend all meetings so that their role and duties can be explained
- It’s important not to appoint someone of the same generation to have the power of attorney
- Advisers should take control of the process when talking about LPA and wills
- Advisers are seeing a greater need for an “at need” contract e.g. an immediate needs annuity. They aren’t great value for money and you need the CF8 qualification to advise on these products.
Conclusion and Solutions:
- Encourage the vulnerable client to have either a family member or a trusted adviser (solicitor or accountant) present at the meeting
Experts:
Clive Barwell, Wren Sterling
Facilitator:
John Champman, Orion Consultancy
