However, if a client with a significant amount of debt is about to have their house repossessed, this is a clear indicator of vulnerability.
In addition to spotting potential signs of vulnerability, advisers should also be proactive in their approach when it comes to dealing with vulnerable clients.
In addition to keeping recordings and accurate records of your interaction, this might mean spending more time taking through the product features and potential impact on their lives or even explaining why you feel they are vulnerable and how you intend to support them.
Other priorities could include engaging with interested parties, such as relatives, carers and lawyers, or flagging the vulnerability to other companies in the chain to ensure clients are properly supported throughout the equity release process.
Another approach which may be overlooked by some advisers is asking other parties for guidance and sharing best practice with industry colleagues to ensure vulnerable clients are identified and cared for.
For example, advisers could speak to another member of their team about how to support vulnerable clients, or seek guidance from other professionals during the advice process.
More could be done
While adviser knowledge has improved over recent years, there is room for improvement, especially when it comes to the more subtle vulnerability triggers as previously noted. Indeed, nearly nine out of 10 advisers (88 per cent) admitted it is not easy to spot a vulnerable client.
Before the pandemic, most equity release consultations took place in a face-to-face environment – usually the client’s home – which made spotting possible vulnerabilities easier.
In recent months, Covid-19 and lockdown has meant many consultations have taken place via video call or telephone, which has made things more challenging for advisers to ascertain whether a client is vulnerable.
On the other hand, virtual and phone consultations enable more clients to involve their family in discussions, since geography is less of an issue.
Supporting family involvement
Involving family members in the equity release process can have several benefits for both advisers and customers. However, advisers can face resistance from clients – and this is a challenge they must address.
If a family member is present, they may be able to spot if the client appears more confused than normal or is acting out of character, which could be a sign of vulnerability.
For those clients who prefer not to involve their families, it can be important to highlight that a more open approach will avoid nasty inheritance shocks and that they may gain comfort from sharing plans with loved ones.
