Four-in-ten later life advisers say more vulnerability training is required to meet the needs of clients in the wake of the Consumer Duty launch, data from More2life shows.
The lender’s bi-annual vulnerability report found that 39% of advisers said that ‘in-depth’ vulnerability training is needed following the introduction of the Financial Conduct Authority’s wide-sweeping guidance at the end of last month.
The regulator’s new guidance applies to all of the UK’s 60,000 regulated financial firms, including the mortgage industry’s roughly 100 lenders and 18,000 brokers and broker firms.
It says the wide-ranging guidance aims are to set out “higher and clearer standards of consumer protection across financial services”.
The lender’s poll underlined how important later life brokers view understanding in this area, with 97% of advisers saying it was “very important” to be conscious of client vulnerabilities.
The poll underlined how important brokers view understanding in this area, with 97% of advisers saying it was “very important” to be conscious of client vulnerabilities. Just one-in-eight advisers said it was “easy to spot a vulnerable client”.
Before the introduction of the Consumer Duty, brokers said the new rules, as regards vulnerable customers, would focus on good outcomes, said 28% of advisers, clearer documentation of the process, said 26%, and more regular post-sales contact from both the adviser and the lender, said 13%.
However, over half of brokers felt training in this area had “significantly improved” in the past year, which is more than double the 22% of advisers who held this view in 2021.
Although just 21% of brokers felt that current levels of training in the sector were “sufficient”.
Advisers said the most common causes of vulnerabilities in customers are problems arising out of managing large interest-only mortgages, said 43% of brokers, or the various impacts of living to an advanced age, said 42%.
The current cost-of-living crisis was viewed as a cause of vulnerability among clients by just over one-third of advisers.
More2life managing director Ben Waugh says: “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.
“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.”
More2life interviewed over 300 equity release advisers on this topic in February.
