Anyone can be vulnerable
“I always find it useful to try and understand the family dynamic too; are there any family tensions that may need to be borne in mind?" says Page.
“Dementia not only affects the person who has the diagnosis and their financial affairs, it can also have a significant impact on those around them," says Kirsten Dalton, a Solla-accredited chartered financial planner with the Professional Financial Centre.
"The need to spend time caring can affect earning capacity for family members and therefore their own financial futures.”
Advisers should ensure they are aware of those other factors surrounding their client.
“Notwithstanding the purely financial consequences, in order to know your clients fully and to help clients get the best outcomes, you need to understand all the other factors that are affecting their lives," says Dalton.
Dementia often affects family members too
Vulnerable client policy
The Financial Conduct Authority expects businesses to have a vulnerable client policy in place, which, according to Dalton, is not just for older clients or clients with dementia but for a broad spectrum of potentially vulnerable people.
There are resources available to assist with developing a business's own vulnerability policy. One Dalton says she found particularly useful is a document issued by My Care Consultant and Just, which is available from the Financial Vulnerability Taskforce.
For Page, having a vulnerability policy is vital, “even to ensure consistency of approach across a firm, but more importantly to raise awareness”.
He says it is key that all staff recognise the potential problems that clients may face and that they are aware of the sometimes subtle signals that could identify someone that needs extra help or support.
“I would strongly recommend that all advisers read, understand and sign up to the [Chartered Insurance Institute] charter. This covers all people in vulnerable circumstances not just those living with dementia. It is also worth looking at the FCA final guidance (FG21/1) on dealing with vulnerable clients.”
Hanifan says a good vulnerability policy in a business will help to ensure that there is both an understanding of the potential vulnerability of clients and an ethos of support for these clients across the organisation.
“It should help advisers and all the support staff to recognise the signs of vulnerability even if they are not immediately obvious,” she says.
“Too often advisers think of vulnerability in very narrow terms, for example older people with dementia or people living with an obvious physical disability.
