The Personal Finance Society (PFS) has launched an independent financial vulnerability taskforce with the aim of supporting the profession to better recognise and address the various forms of consumer vulnerability, improve client outcomes and increase access to financial advice.
The taskforce will promote greater understanding of clients in vulnerable circumstances and encourage appropriate behaviour through the sharing of good practice while also addressing the expectations of regulatory standards and public expectations.
Financial advisers wishing to adopt the financial vulnerability charter must commit to the nine consumer guide pledges:
- Acknowledge their services involve the application of specialist and technical financial knowledge, which places many clients in a position of dependency;
- Ensure clients’ interests are placed above commercial interests;
- Recognise vulnerability can manifest itself in physical, mental or an emotional form, is dynamic in nature and may be hidden;
- Treat all clients fairly, regardless of their identity, age, gender, race, sexual orientation, disability, gender reassignment, religion or belief, and guard against making assumptions about the characteristics of individuals;
- Be aware that language is important and that vulnerability relates to circumstances and not a type of person. Recognise people in vulnerable circumstances could be unaware of their vulnerability and, if they are aware, may not wish to be described as vulnerable;
- Accept heightened professional obligations towards clients in vulnerable circumstances; and the need for raised awareness, greater sensitivity and additional technical competencies;
- Encourage clients to self-declare any vulnerability safe in the knowledge the advice they receive will be as good as that received by those who are not in vulnerable circumstances, confidentiality will be maintained and the way they will be treated will be fully compliant with relevant legislation;
- Provide training to everyone within the organisation on appropriate methods of engagement and the effective discharge of professional services to clients in vulnerable circumstances; and
- Recognise clients in vulnerable circumstances who may be in immediate danger of significant abuse or harm and contact the appropriate authorities to mitigate the risks they face.
Details
Advisers who sign-up to the charter will be expected to display their commitment to these pledges on their website via a digital badge, list the core pledges and reference the consumer guide.
Supporters of the taskforce will have access to subject matter experts plus a resource library from the PFS, which contains information about the latest scams targeting clients in vulnerable circumstances, the latest regulatory guidance and links to agencies that can assist clients at risk of abuse.
Further educational material and insight relating to supporting clients in vulnerable circumstances will be produced by the taskforce’s steering committee.
Committee
The steering committee is chaired by Keith Richards, chief executive of the PFS.
It includes:
- Caroline Bielanska, joint founder and former chief executive and chair of Solicitors for the Elderly,
- Professor Keith Brown, founding director of the National Centre for Post-Qualifying Social Work and professional practice and chair of the NHS England Safeguarding Adults National Network;
- Andrew Mason, non-executive director of Matrix Capital;
- Robin Melley, managing director of Matrix Capital;
- Tony Miles, technical director of My Care Consultant;
- Tali Shlomo, head of inclusion and wellbeing at Shearman & Sterling; and
- Laura Thursfield, financial planner at Mazars.
Richards said: “Our profession must be given the mechanisms to unite behind transparent and consistent standards if we are to demonstrate we are a trusted ‘safe pair of hands’.
“The current regulatory focus on vulnerability provides a timely opportunity as a united profession to change public perception through the way in which we consciously deal with those in vulnerable circumstances and address perceptions or the unconscious reality of commercial conflicts of interest.
“I encourage every member of the financial planning and advice profession to adopt the taskforce’s charter, support this endeavour and publicly display commitment via a new digital logo.”
