My brother broke his back in his first year of university. He was 19. His life took a very different direction from that day forwards, and while he is able to live with reasonable independence, there’s no doubt he’s faced his fair share of challenges, living in a wheelchair and coping with the day-to-day struggles that disability brings.
He wouldn’t like the term, and neither do I, but according to all of the definitions he is a vulnerable person, writes Richard Fraser, group chief executive at Frenkel Topping Group.
He was still in his teens when he became vulnerable. My parents, who were comfortable enough before the accident, became vulnerable in the same instant.
Many layers of vulnerability
We so often associate the world vulnerability with old age, a state that we gradually move into. But I’ve witnessed first-hand how vulnerability can strike and what the term really means in practice.
It’s that experience that’s been the real driver for me to lead Frenkel Topping in its mission to be the financial adviser of choice for vulnerable people.
For more than 30 years we’ve specialised in advising clients who’ve suffered personal injury or clinical negligence, and who have received a financial settlement as a result.
For many of them, their vulnerabilities post-injury are clear. Life-changing events mean they lack capacity to make decisions and need a third-party individual to represent their best interests.
But for others, vulnerability is less obvious. It can come in many forms. Injury, illness, divorce. Even positive financial events – someone winning the lottery, for example – can make that person vulnerable.
Beyond what the eye can see
The Financial Conduct Authority (FCA) defines vulnerability as: “someone who, due to their personal circumstances, is especially susceptible to detriment”.
If a person is unprepared and underqualified to manage vast sums of money, they can easily be taken advantage of.
The outbreak of covid-19 has made many of us vulnerable, and it really isn’t a term that is used just for those living with a severe injury or illness anymore. The pandemic doesn’t discriminate, it has left nobody untouched and many of us have been assessing the impact on our investments, pensions and savings.
But who do we turn to for advice and can we trust them?
Duty of care
We operate in a niche area of financial services, and through our experience of advising clients at vulnerable times of life we recognised the need for our customers to have access to our other services – generalist wealth management and discretionary fund management – and have their individual circumstances understood.
As financial advisers, we draw on decades of experience of advising clients.
Let’s face it, life isn’t perfect and what we see every day is far from it and, as advisers, we have to factor in events which can happen and ensure that financial needs can be met should a client require specialist care or treatment.
The duty of care is absolute and uncompromising; clients’ money must last them a lifetime.
Interaction is key
Vulnerability is not just a physical state, but also a mental one.
A client who requires help needs to be supported at all times either through human or digital interaction. If a client is coping with a difficult situation, they do not want to be put on hold for a long period of time, only to be frustrated by an automated voice or elevator music on a loop.
While these things may seem small, they are important. There are many things to bear in mind but we believe the core basics to a better client journey are:
- The frontline staff must be well-trained to deal with enquiries in an effective and timely manner;
- Advisers must be well-trained in explaining complex financial products, what it means and, importantly, have the emotional intelligence to empathise with clients who may be in really tough situations;
- Create a digital offering so clients have instant access and can view their investments online; and,
- Dealing with vulnerable clients is complex, as they themselves are leading complex lives. Advising them successfully starts with our moral obligation to do the right thing. We know our clients’ money has to last a lifetime and we’re well aware of the challenges that life can present.
This article was written for International Adviser by Richard Fraser, group chief executive at Frenkel Topping Group
