Assessing and recording vulnerability
A key part of any consumer vulnerability policy is the assessment and recording of a client’s vulnerability. But how can you ensure that it’s done consistently?
We’ve developed a Client Wellbeing Checklist to help make this easier.
It contains 20 suggested factors to consider when meeting a client and a ‘red/amber/green’ rating to easily highlight any potential issues. These suggested wordings can be adapted to suit a firm’s business requirements, brand and compliance policy to:
- Formalise a vulnerability assessment process
- Help staff assess client vulnerability in a consistent way
- Record the questions asked, results and vulnerability rating for each client
- Monitor whether a client’s assessed vulnerability is changing over time – the checklist can be added to a client file, reviewed before meetings and updated as appropriate.
Please obtain appropriate management and/or compliance approvals before using.
This checklist is designed to help users assess a customer’s vulnerability across the areas highlighted by the Financial Conduct Authority (FCA):
- Health – health conditions or illnesses that affect the ability to carry out day-to-day tasks
- Life events – major life events such as bereavement or a relationship breakdown
- Resilience – low ability to withstand financial or emotional shocks
- Capability – low knowledge of financial matters or low confidence in managing money