AIM OF THIS POLICY
This policy outlines the practice and procedures for staff at Consilium Asset Management to contribute to preventing the detriment of clients who find themselves in vulnerable circumstances.
The policy covers all firm staff, particularly those working in areas that deal directly with customers.
DEFINITION OF VULNERABLE
The Financial Conduct Authority (FCA) has developed the following definition to guide work in this area:
“A vulnerable consumer to be someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.”
Vulnerability occurs in various forms, depending on its nature. It may be permanent, temporary, or even sporadic. In many circumstances, individuals may not recognise themselves as ‘vulnerable’.
We recognise that vulnerability may not be simply due to the consumer’s situation but caused or aggravated by the actions or processes of the firms they may deal with.
Clients who might be considered as being in vulnerable circumstances could include:
Clients with mental capacity deficiencies (including language or communication), including mental illness and dementia;
- Clients with mental capacity deficiencies (including language or communication), including mental illness and dementia;
- Clients under stress or subject to financial shock of all types, such as employment concerns, bereavement (or potential bereavement), marital or relationship difficulties;
- Clients with a physical impairment that may not allow them to engage with automated or other standard process requirements (such as photographic ID, phone keypad recognition, or internet applications);
- Clients with severe and long-term illness (both life-limiting and where recovery is expected);
- Clients who are “underbanked “or “financially unsophisticated”;
- Clients with low income;
- Clients already in a distressed financial situation;
- Those acting on behalf of others as ‘carers’, including those operating a power of attorney;
- Those without access to the internet or other digital media;
- Financially inexperienced clients, and
- Those with poor language skills. Clients aged 75 and over or clients aged 18 years and under
As a firm, we must remain mindful of these clients’ potential enquiries and any change of circumstance regarding existing customers.
IDENTIFICATION OF CLIENTS IN VULNERABLE CIRCUMSTANCES
Vulnerability is broad and may occur at any time. It will usually involve the interplay of characteristics of the individual, their circumstances, and static or transitory status.
Consilium Asset Management may only deal with customers in vulnerable circumstances where we know their needs.
- Mental
capacity deficiencies – The FCA provides clear guidance on the identification
of mental capacity issues in their Handbook, specifically under CONC 2.10.8
Appended to this policy. - Stress or financial shock – may be identifiable.
(facial expression, posture or stance, etc.), but otherwise may be revealed
through conversation before and during an interview - Physical
impairment – may be identified visually or through the interview - Severe
and long-term illness – may be identifiable through conversation or through
interview - “Under
banked” or “financially unsophisticated” – may be identified through an interview
and their credit profile - Low
income – may be identified through interviews and credit profile - In
financial distress – may be identified through interviews and credit profile - Carers
– may be identified through interview or conversation - Digital
exclusion – identifiable through interview or via routes of engagement with
firm - Inexperience
– age may be a factor in exposure to financial products - Poor
language skills – may be audible or identifiable via routes of engagement with
firm. - Clients
aged 75 and over or clients aged 18 years and under – opportunity to have a
relative or friend accompany the client to a meeting
The nature of the need area to be addressed, for example, in connection with arranging mortgages and/or home finance, equity release, sale and rent back, right-to-buy, or where the main purpose of raising funds is to consolidate debt, or advising on and / or facilitating the provision long-term care may also indicate vulnerability. Here additional safeguards will be applied as appropriate to ensure fair treatment.
ASSESSMENT AND MANAGEMENT OF RISK
Consilium Asset Management will not discriminate against clients in vulnerable circumstances by way of adjustment to fees or any refusal to assist purely on the grounds of the client’s circumstance (unless that circumstance creates a situation which is likely to lead to a detriment or a risk that removes the availability of any finance facility).
We will review our practices periodically for consistency and to determine adherence to the stated policy.
RIGHTS & RESPONSIBILITIES
Responsibilities of Consilium Asset Management
- To
abide by the FCA’s principles and rules in this area - FCA
Principles for Business 6 & 7 - ICOBS
2.2.2R; and 6.1.5R; - CONC
8.2.7; - DEPP
6.5A.2 (calculation of enforcement fines); and - Individual
conduct rules (treating customers fairly). - To
ensure staff are aware of this policy and are adequately trained to identify
and deal with clients who are or may appear “vulnerable.” - To
support individuals in relation to identified risk and vulnerability - To provide
means of reporting any instance where they believe that a client might be in
vulnerable circumstance.
Responsibilities of Consilium Asset Management’s employees
- To be
familiar with this policy and procedures, and be able to recognise where
additional support or signposting to other agencies may be required - To take
appropriate action in line with the policies of Consilium Asset Management - To
report any instance where they believe that a client might be in a vulnerable
circumstance, and act accordingly in line with the policy.
