In partnership with Just, the Financial Vulnerability Taskforce has launched a new guide designed to help advice firms navigate situations where concerns arise about a client’s ability to make informed financial decisions.
As longevity increases, advice firms are more likely to encounter clients whose ability to make financial decisions may be affected by cognitive decline, illness or other vulnerabilities.
The new guide, ‘Delivering Good Client Outcomes When Decision Making Becomes a Concern’, aims to help firms understand how to respond appropriately when those concerns arise, while continuing to support good client outcomes.
Importantly, the guide makes clear that advisers are not expected to make clinical assessments of mental capacity.
Instead, it focuses on recognising when concerns may exist, adapting communication and support where appropriate, and understanding the processes available to help protect clients’ interests.
The guide aims to help firms:
- Understand the legal framework surrounding mental capacity and decision-making.
- Navigate the relationship between mental capacity, vulnerability and Consumer Duty.
- Respond appropriately in common financial planning scenarios where additional support may be needed.
- Implement practical processes, record-keeping and escalation routes.
- Access further sources of specialist support and guidance.
Among the areas covered are communication approaches, record-keeping requirements, escalation routes and examples of financial planning situations where additional support may be required.
The resource was developed with input from subject matter experts and reviewed by Professor Keith Brown, whose work focuses on safeguarding, mental capacity and adult social care.
Download the guide: Delivering Good Client Outcomes When Decision Making Becomes a Concern
Main image: retire, vulnerable, sven-mieke-zlA7c39DfFk-unsplash
