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.
The benefits of the checklist
- 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.
- The suggested wordings on the checklist can be adapted to suit a firm’s business requirements, brand and compliance policy. Please let us know if you'd like a white labelled version.
Obviously, this is subject to your own compliance and management approvals, but we hope the document gives a good starting point for you to apply.
How does the checklist work?
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