Lisa Webster: A vulnerable client dilemma

We have heard a lot about vulnerable customers recently. Even before the Consumer Duty came along it was a big area of focus for the FCA and now we all have added responsibility under the duty. Like many of you, I’m sure, I’ve attended training on the subject – and I’ve even put on a virtual reality headset to ‘jump into’ a room with a vulnerable customer at a recent conference. While training is a useful tool, and should be a vital part of what we are all doing to help our understanding and implement strategies to look after our clients when they need it most, there’s nothing like your loved ones and those close to you becoming vulnerable to really drive home the importance of it all. My husband is currently dealing with the estate of an elderly relative who had been obviously vulnerable for a few years, and my own parents are reaching the age where things could well head in that direction. What they all have in common is in the last few years their trusted long-standing financial advisers have retired. In the case of my in-law she would frequently talk about the adviser she had had for decades, but the new person who took over when she was well into her nineties never built a relationship – nor importantly with her closest relatives – in the short time he dealt with her when she would still have been capable of understanding. My parents, in their eighties, have recently had their adviser of many years retire too. Though still very alert, it strikes me as not a great time in life to have to be dealing with someone new you have no relationship with. You will all know better than me that adviser-client relationships can take time to develop, and the better the relationship the more clients are likely to open up, and the more value advisers can add. The better you know your client the more likely you are to be able to spot signs of vulnerability too. Of course, vulnerability can happen to anyone at any time. But vulnerability due to age and cognitive decline is more foreseeable than most. If you have clients (say) 15 years older than you, and you plan to retire at 60, is waiting until you go the best time to hand over your clients who would then be in their mid-70s? Or in my in-law’s case, much older. Both adviser firms involved with my family are large, multi-office organisations with many advisers. While it may not be practical in smaller businesses, where you do have younger colleagues would it not help your clients to get them involved much earlier so they know – and trust – their new adviser well before you collect your proverbial carriage clock? Lisa Webster is senior technical consultant at AJ Bell. She is an economics graduate with over 15 years’ experience in financial services. Prior to joining AJ Bell in May 2014 she spent nine years working in senior technical and consultancy roles at a major SIPP and SSAS provider. She is part of the AJ Bell Technical Team, responsible for providing regulatory and technical analysis to the business and outside world. Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Twitter: @lisasippster

Lisa Webster: A vulnerable client dilemma

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