“ DO UNTO OTHERS …” Regulation , consumer duty and vulnerable clients
16 | THE PROTECTION ADVISER
Mark Greenwood Director of Compliance Services SimplyBiz
Our face-to-face events are back underway , and we ’ ve recently been reconnecting with hundreds of adviser firms for the first time in a couple of years . When speaking to many of them , it is clear that they have a simple mandate ; to ensure their clients receive the very best service , whilst continuing to operate a compliant and profitable business .
In all honesty , we ’ ve both worked with financial advisers for a couple of decades apiece , and this mandate hasn ’ t changed markedly during this time in terms of intention . However , the market – and the world – in which we find ourselves in 2022 has undergone a number of transformations . At the same time , regulatory requirements upon firms have continued to increase .
The turbulence of the past few years in a whole breadth of areas mean that we ’ re potentially facing an unprecedented vulnerability epidemic . The impact of the pandemic , the isolation and uncertainty that came with it , strains on families and relationships , global conflict and unrest , and much more , have hugely influenced people ’ s mental , physical and financial wellbeing . Those who were already vulnerable in some way may have found events of recent years extremely damaging , and some will have doubtlessly found themselves vulnerable in one , or numerous ways , for the first time .
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Those who were already
vulnerable in some way may have found events of recent years extremely damaging , and some will have doubtlessly found themselves vulnerable in one , or numerous ways , for the first time .
As things stand – and this will not be changing any time soon - all firms have a responsibility to set out an approach to dealing with vulnerable persons , which should be accounted for in its vulnerable persons policy . An important part of that policy is to understand the responsibilities the firm has under its authorisation by the FCA , and to ensure vulnerability is considered when acting on behalf of a client .
Whilst , for many , the motivation to address how vulnerable clients are treated is rooted in regulation , there are many benefits of a robust policy , approach and culture for a firm . In addition to knowing you have done all you can to ensure you are delivering suitable guidance , addressing your stance on vulnerable customers can also strengthen your relationship with existing clients and introduce you to new generations of potential clients .