Vulnerability training in the later life market

I think we’re in a good position to spot the more obvious vulnerabilities or discover them through detailed fact finding and getting to know a client. I thought I was pretty good at spotting potentially vulnerable circumstances but having been through the Solla accreditation I now feel more empowered to spot them and identify ways of helping the clients and their families.

I would like to see more training around how to discuss potential vulnerabilities with clients and their families, and if possible how we can become encourage clients to tell us in advance of any potential vulnerable circumstances. I would encourage anyone working in this area to join SOLLA the resources are fantastic.

Client vulnerability is a very subjective area and, with the FCA's research suggesting that around half of all clients are potentially vulnerable, it is something all advisers need to be aware of; but in particular those dealing in the later life market. Vulnerability can be obvious such as a traumatic life event, or recent life-limiting medical diagnosis. However, it can also be far more subtle like poor access to the internet or a lack of understanding of how to access financial service tools online. All of these are vulnerabilities that advisers need to be aware of, and more importantly, know how to act once they have been highlighted; each individual is different and whilst some may be happy to have a third-party present to help them, others will strongly object to that and a different solution will need to be agreed upon between the adviser and the client.

I believe the majority of brokers can identify a vulnerable customer from an initial call. The FCA provide a list of what they deem to be a vulnerable customer but from experience, anybody can fall into this category. I have recently spoken to a new client whos been investing in property for over 25 years but I would deem him vulnerable after falling into a negative equity situation across a buy-to-let portfolio.

Perhaps a couple of webinars from the FCA would be welcomed on not only identifying vulnerable customers but also what they would feel are suitable measures to help those particular clients.

The introduction of consumer duty and the constant reminder to know your customer can only be a good measure in ensuring all client objectives and vulnerabilities are met.

Brokers, like myself, specialising in clients with credit challenges and the later-life market, believe they've honed their skills to recognise client vulnerabilities. Despite this confidence, it's crucial to engage continually during discussions and regularly check a client's understanding of the product. Sometimes, revisiting call recordings can help identify missed signals. To further enhance this skill, involving family members in discussions can provide an additional perspective and highlight areas that might need more clarity.

To boost our capability in spotting vulnerabilities, brokers can benefit from more in-depth training. I would welcome training that offers insights into user-friendly language, behavioural cues, and the psychology of the older generation. This would not only deepen our understanding but also equip us to better cater to the unique needs of our clientele.

Many people in later life feel isolated but often fail to seek help for fear of bothering or burdening others. In helping people make informed decisions, it is incumbent on brokers to consider financial as well as personal circumstances. To increase ability to spot and respond to vulnerabilities, brokers need to foster trust. Sharing personal anecdotes or success stories involving vulnerable clients can go a long way to diminish perceived stigma and remove barriers. Training should include not only awareness, but strategies to create a safe space. In addition to basic training, brokers can learn how to adapt communication styles. Lastly, brokers should familiarise themselves with local support networks, enabling them to provide clients with additional resources beyond mortgages. Incorporating these elements into training can empower brokers to identify vulnerabilities, dissolve stigma, and create an atmosphere where clients feel respected, understood, and empowered.