Recognising vulnerability: how professionals can work together to support clients

Professionals work with clients from all walks of life, each with their own goals and support needs.

For some clients, their personal circumstances or characteristics may make it harder for them to understand information, make decisions, or engage with the service they need.

These clients may be considered vulnerable, but this isn’t always obvious. Recognising the signs is an important first step in understanding when someone may need additional support and adapting your approach accordingly.

And vulnerability is far more common than you might think. Royal London reports that 47% of UK adults have one or more characteristics of vulnerability.

Read on to find out how you can recognise vulnerability and what steps professionals can take to work together to support such clients.

There are 4 broad categories of vulnerability

Vulnerability can take many forms, and it isn’t always immediately apparent. The FCA defines a vulnerable customer as: “Someone who, due to their personal circumstances, is especially susceptible to harm, particularly when a firm is not acting with appropriate levels of care.”

The FCA’s framework identifies four broad areas to consider:

• Health: Physical or mental health conditions, disabilities, long-term illness, hearing or visual impairment, and cognitive difficulties.
• Life events: Bereavement, divorce or separation, redundancy, caring responsibilities, or sudden changes in income.
• Resilience: Debt, low or inconsistent income, or limited support from family and friends.
• Capability: Learning difficulties, low literacy or numeracy, limited English or digital skills, and low financial knowledge or confidence.

Of course, there may be other forms of vulnerability, but these categories can help professionals recognise when a client might need additional support.

Some clients might explain their circumstances openly, while others may reveal them indirectly. For instance, they could:

• Repeatedly say they don’t understand something
• Mention a recent bereavement or job loss
• Appear distressed or overwhelmed
• Repeat themselves
• Agree to everything without keeping up with the conversation
• Display a notable change in how or how often they communicate

It’s also important to look beyond your own conversations with a client. Late or missed payments, increased withdrawals from pensions or investments, or an insurance claim could indicate that circumstances have changed and that they might benefit from a meeting with you.

Professionals can work together to support vulnerable clients

Working with other professionals can give you a better understanding of a client’s circumstances and help ensure they receive joined-up support. This might include a solicitor, financial planner, accountant, or other adviser.

A few things can help make collaboration work well:

• Be clear about roles. Agree who is responsible for what and explain this to the client. This can help ensure professionals don’t offer duplicated or conflicting advice and make it clearer who the client should speak to about different issues.
• Get the client’s consent. Before sharing information with another professional, make sure the client understands what will be shared, who it will be shared with, and why. They should remain involved in decisions about their information.
• Involve others early. Legal and financial decisions can have a significant impact on one another. Bringing the relevant professionals into the conversation early can help identify potential issues before decisions are finalised.
• Keep communication clear. Agree how you’ll share updates and who will keep everyone informed when circumstances change. This helps prevent advice being based on outdated information and means the client doesn’t have to keep repeating their story.
• Keep the client at the centre. Vulnerability doesn’t mean someone can’t make their own decisions. Take the time to understand what support they actually need, make reasonable adjustments where appropriate, and keep their goals and preferences at the heart of the conversation.

Financial planners and solicitors can offer specific support for vulnerable clients

Depending on the client’s circumstances, financial planners and solicitors may be able to help with a range of issues, either directly or by bringing in a specialist.

Some of the ways we can support clients include:

• Registering Lasting Powers of Attorney (LPAs): An LPA can allow someone trusted to make financial or health decisions on a client’s behalf if they lose the capacity to do so themselves. Solicitors can help with the legal process, while financial planners can help ensure the client’s finances are arranged with their longer-term needs in mind.
• Setting up trusts: A trust can provide a way to manage and protect assets for a vulnerable person or their dependants. Financial planners can advise on the financial and tax considerations, while solicitors can establish the trust and advise on its legal structure.
• Care planning: Planning ahead for potential care needs can help clients understand how their care might be funded and what this could mean for their finances. Financial planners can help assess the options, while solicitors can advise on the relevant legal considerations.
• Debt support: Where debt is contributing to a client’s vulnerability, a financial planner can help review their finances and consider appropriate ways forward. Specialist organisations such as StepChange can also provide debt advice, while solicitors may be able to help with legal issues involving creditors or insolvency.

The right support will depend on the individual. In some cases, the most useful thing a professional can do is recognise that a client needs help outside their own area of expertise and bring in someone who can provide it.

Get in touch

To find out more about how our sectors can work together for the benefit of our mutual clients, get in touch.

Email info@fbwealth.co.uk or call us on 0333 1122211

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.