They welcome additional training and support amid new Consumer Duty regulations
Around two in five, or 39%, of later life advisers believe that more in-depth vulnerability training is needed to meet clients’ needs, research from later life lender more2life has found.
A vast majority of advisers, or 97%, thought it was ‘very important’ to be conscious and develop an understanding of client vulnerabilities, while only one in eight advisers said it was easy to spot a vulnerable client.
Advisers also predicted that the new Consumer Duty regulations would affect current wisdom on managing vulnerable customers in several ways, including enhanced scrutiny around good outcomes (28%), clearer documentation of the process (26%), and expectation around more regular post-sales contact from both the adviser and the lender (13%).
Over half of the surveyed advisers in more2life’s bi-annual vulnerability report felt that education and training on supporting vulnerable clients significantly improved in the past year, which is more than double the 22% of advisers who reported the same conclusion in 2021. Still, just 21% of the survey respondents felt that current levels of training in the sector were sufficient.
more2life noted that almost a third of clients were identified as vulnerable due to pressures stemming from the cost-of-living crisis. For the majority of these vulnerable clients, however, the common root causes were either longer term challenges or unrelated to the current economic turmoil – namely large interest-only mortgages (43%) or the various impacts of living to an advanced age (42%).
“While lenders, platforms, and networks are being proactive in providing training and information, it is vital that our industry keeps pace with this evolving issue,” commented Ben Waugh (pictured), managing director at more2life.
“Close collaboration is paramount to ensure that the most vulnerable customers receive swift and effective support in a challenging economic environment, and knowledge is key. Access to a wider range of training will empower advisers in the new regulatory environment.
“Educational resources such as learning modules on client vulnerability will equip advisers to both identify vulnerability and provide bespoke support on a case-by-case basis. Not to mention, the most prepared advisers will be able to seamlessly adjust to the new Consumer Duty regulations and provide thorough evidence of compliance when it comes to vulnerability.”
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