A difficult but important subject, which Jo Campbell, Chief Operating Officer at Verve, tackles with sensitivity while offering practical guidance on how paraplanners can recognise, document and raise concerns about financial abuse.
We talk a lot about vulnerability in this industry. Cognitive decline, bereavement, health conditions, all the categories we’re trained to spot and flag.
But there’s one form of vulnerability that doesn’t always get the airtime it deserves, and it’s one paraplanners are often perfectly placed to notice: financial abuse.
Financial abuse is more prevalent than you may think and paraplanners, because we sit behind the scenes reading fact-finds, statements and correspondence, are well placed to see the warning signs before anyone in the front office does.
What actually is financial abuse?
At its simplest, it’s a form of domestic abuse where one person uses money, or control over money, to dominate or restrict another.
That could be a partner, a family member or even a trusted friend (read trustee). It’s rarely as obvious as someone announcing “I control all the money now.” It creeps in through small things that build into patterns, that can be recognised only when you’re alert to them.
This is generally more common where women are the victims, but not always. The stats say that one in six women in the UK has experienced financial abuse by a current or former partner, over the last year.
The warning signs
I’ve listed here a few things to look out for that could raise some red flags:
- A joint account suddenly becomes a sole account, or vice versa, with no obvious reason.
- One party is always copied into correspondence but never actually speaks or engages directly.
- All meeting notes mention words along the lines of “I’ll need to check with my husband/wife/partner/friend” even for the smallest decisions.
- Large, unexplained withdrawals or transfers appear on statements shortly before or after a review.
- The client seems anxious, evasive or oddly rehearsed when discussing their own finances.
None of these on their own mean abuse is happening. Context matters, and plenty of couples genuinely make joint decisions together and that’s healthy.
What we’re looking for is the pattern, not the one off. If something feels off in the paperwork, trust that instinct.
Paraplanners read between the lines for a living, and this is exactly where that skill earns its keep.
If you think there may be abuse indicators, what should you do?
You’re not a social worker, you’re not (presumably) psychic and you’re not expected to play detective. But you are part of an important chain that can flag concerns.
Start by documenting what you’ve noticed, factually and without assumption. Don’t write “client is being controlled by husband,” write what you actually observed: dates, figures, patterns.
Raise it with the adviser directly. They’re the ones with the relationship and the ability to have a sensitive conversation with the client alone, away from any other party. They may be able to give more context to the hard facts too.
Check your firm’s vulnerable client policy. Most firms have one under Consumer Duty now, and financial abuse absolutely falls under that umbrella even if it isn’t named explicitly.
If your firm doesn’t have a clear process for this, that’s worth raising too.
Where appropriate, advisers can gently create opportunities to speak to a client one to one, without assuming or accusing, just making space. Sometimes that’s all someone needs to feel able to say something.
And if you’re ever unsure, organisations like Surviving Economic Abuse exist specifically to support professionals working out how to help clients in this situation, as well as those experiencing it directly.
We don’t meet clients face to face, so it’s easy to think this isn’t our problem to notice.
But we see the numbers, the transfers, the odd gaps in a fact find that don’t quite add up and that means that sometimes we’re the first person in the whole advice process to spot that something isn’t right.
We can’t fix everything from behind a screen and a suitability report template. But noticing, documenting and speaking up? That we can absolutely do.
Please remember that with vulnerability being such a focus of the regulator, your firm would rather you raise ten incorrect cases, if you have identified even one potential true issue, so do not be afraid to document and raise your concerns.
If you or someone you know may be experiencing financial abuse, Surviving Economic Abuse (survivingeconomicabuse.org) offers support and guidance for both individuals and professionals.
Main image: economic abuse, mathieu-stern-1fzyz-bmKBw-unsplash
