Advice firms increasing support for vulnerable clients

Its data found that 72% of firms have specific rules in place for advisers dealing with older and vulnerable clients and 47% train staff to spot signs of cognitive impairment.

More than two out of five firms (43%) questioned say they monitor for signs of unusual or concerning behaviour among clients while 14% say they will refer clients showing signs of cognitive decline to specialist advisers.

Rules and procedures being adopted by 42% of firms include insisting that third-parties such as younger family members or legal representatives attend any meetings with clients who are considered vulnerable.

Prudential’s research found that 17% of firms have no specific processes for dealing with or spotting issues with cognitive decline while 27% say the assess client issues on a case-by-case basis.

Around half (50%) of firms said they already had processes in place to deal with potential issues from older clients managing income drawdown in later life while 28% say they have started reviewing processes given the increase in the use of drawdown following the launch of Pension Freedoms.

Vince Smith-Hughes, retirement expert at Prudential, said: “Later life planning is a major and growing part of advisers’ business and firms need specific processes to ensure older and vulnerable clients are supported.

“It is impressive that advisers are increasing support for vulnerable clients and are developing processes to protect the interests of older clients including providing training for staff of spotting signs of cognitive decline.

“More, however, needs to be done as it is certain that cognitive decline and its impact on the advice market will continue to grow increasing the responsibility for advisers to respond.”