Paradigm Partner Forum Your Business and vulnerable clients Billy - PowerPoint PPT Presentation

Paradigm Partner Forum Your Business and vulnerable clients Billy Brown, business development manager

Learning Objectives Understand what vulnerability is and 01 how it can result in client detriment Consider how you might identify 02 vulnerability within your client bank Identify what you can do to best 03 support those in vulnerable situations

Vulnerability – definition reminder A vulnerable person is someone who, due to their personal circumstances, is especially susceptible to detriment , particularly when a firm is not acting with appropriate levels of care. Source: FCA Occasional Paper 8, February 2015 For financial intermediary use only. Not approved for use with customers.

How vulnerable customers experience detriment Financial Psychological Source: FCA Occasional Paper 8, February 2015 For financial intermediary use only. Not approved for use with customers.

What might make a client vulnerable? Mental Physical Low literacy Low income Illness health skills and/or debt disability problems Low Divorced Being Being Caring language Bereaved older old young Job loss skills Source: FCA Occasional Paper 8, February 2015 For financial intermediary use only. Not approved for use with customers.

How many people are vulnerable? One in seven Just under half One in six Almost half adults has literacy of UK adults have people over 80 of adults do not skills that are a numeracy years old are have enough expected of a attainment age of affected by savings to child 11 or below 11 or below Dementia cover an unexpected bill of £300 Source: FCA Occasional Paper 8, February 2015 For financial intermediary use only. Not approved for use with customers.

Why is vulnerability an issue? Often linked Ability to Poor advice to loss of represent and decisions income or own - long term, large interests severe impact expenses Cumulative Lack of ability Exposed to affect to deal with unscrupulous complexity practices Source: FCA Occasional Paper 8, February 2015 For financial intermediary use only. Not approved for use with customers.

What does good look like? Communication Proactive Products Individual, Listen and help tailored Source: FCA Occasional Paper 8, February 2015 For financial intermediary use only. Not approved for use with customers.

where to start? Audit current practice Develop approach and policy Roll out within your business Evaluate, improve, maintain For financial intermediary use only. Not approved for use with customers.

Tools to support – texas drill Thank Explain eXplicit Ask Signpost 3 questions : Internal For the How it will consent - Difficult Or information Be used For use - Ability external - manage Source: FCA Occasional Paper 8, February 2015, Appendix 4 – Practitioners’ Pack For financial intermediary use only. Not approved for use with customers.

Tools to support - idea impact duration Episodes assistance What does Is the the problem How long has What help is situation prevent, or it been going temporary, provided to make more on? permanent, support? difficult? episodic? Source: FCA Occasional Paper 8, February 2015, Appendix 4 – Practitioners’ Pack For financial intermediary use only. Not approved for use with customers.

disclosure “We have…been told by…firms that they are unable to record a customer’s disclosure that they have cancer, even when the customer has given their consent as this would constitute a breach of the DPA.” ‘incorrect’ Source: FCA Occasional Paper 8, February 2015, Appendix 4 – Practitioners’ Pack For financial intermediary use only, not to be used with customers.

Tools to support - carers Reassure Check Avoid For authority Discussing That concerns to act details if no can still be authority recorded Explain Record Summarise That info will Observations Next steps be shared, with consent Source: FCA Occasional Paper 8, February 2015, Appendix 4 – Practitioners’ Pack For financial intermediary use only, not to be used with customers.

Mind your language!! Consequences of Erudite Vernacular Utilized Irrespective of Necessity: Problems with using long words needlessly Daniel M Oppenheimer For financial intermediary use only. Not approved for use with customers.

Recognising vulnerabiltiy Channels and Comprehension Circumstance Access Hearing Mental capacity Bereavement Sight Low Family Language understanding breakdown Physical Dementia Illness disability Source: Huntswood – Delivering fair outcomes to vulnerable consumers For financial intermediary use only, not to be used with customers.

Learning Objectives Understand what vulnerability is and 01 how it can result in client detriment Consider how you might identify 02 vulnerability within your client bank Identify what you can do to best 03 support those in vulnerable situations

Important information

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