Dynamic Planner launches financial wellbeing questionnaire

18 June 2023

Dynamic Planner is launching a financial wellbeing questionnaire to help advisers assess client vulnerability.

The questionnaire, which went live on Friday 16 June, has been developed by Dynamic Planner’s head of Psychology and Behavioural Insights Dr Louis Williams, along with the group’s fund research team and academics from Henley Business School, part of the University of Reading.

The questionnaire is designed to help advisers identify vulnerability characteristics and help clients better understand their financial position in accordance with Consumer Duty.

In line with the FCA, the questionnaire includes objective measures to understand the client’s current situation, as well as subjective measures that explore how the client feels and their ability to cope. It includes psychometric items, for example examining a client’s emotional resilience when faced with financial challenges, confidence in their ability to manage their finances, abilities to tolerate difficult and uncertain periods and the healthy or unhealthy strategies used to regulate their emotions.

Using Dynamic Planner’s algorithm, based on that which underpins the FCA’s Financial Lives Survey, questions are included to identify whether a client’s vulnerability is low, moderate or high. It has been tested with over 1,000 investors.

Louis Williams, head of psychology and behavioural insights at Dynamic Planner, said: “With the first deadline for Consumer Duty imminent, the launch of our Financial Wellbeing Questionnaire powers the identification of vulnerabilities with technology, enabling financial advisers to assess individual clients across four key areas: health, life events, resilience, and capability.

“Aligned with the FCA’s Financial Lives Survey, it provides advisers with a solution to the call to action set out by Consumer Duty to assess client’s vulnerability characteristics.

“We are committed to supporting advice firms in helping their clients better understand their financial situation and choose investments that are suitable to fund the life they want. The Financial Wellbeing Questionnaire is another example of us delivering on that commitment.”

Advisers using the questionnaire with their clients will receive a report for their Consumer Duty record which highlights areas of vulnerability. The report includes insights and tips to share with the client.

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Professional Paraplanner