Daniel Stansall, IFA Barnet – Lonsdale Services Vulnerable Client Policy

Monday 13 March, 2017

Daniel Stansall, independent financial adviser Barnet reviews the Lonsdale Services Vulnerable Client Policy

Daniel Stansall, independent financial adviser Barnet, and member of our North London financial planning team said: ‘At Lonsdale Services our independent financial advisers (IFAs) adhere to our Vulnerable Client Policy.  A vulnerable client is one whose health, age or circumstances may make them less able than others to fully comprehend the risks, costs or implications of any independent financial advice given.  They may also be less able to identify and prioritise their own needs or not be able to assess information in the usual format.  As a result of this they may be more likely to be easily influenced or accept financial advice without fully understanding whether it meets their needs.’

The Lonsdale Services Vulnerable Client Policy includes the following groups.  

However, this list is not exhaustive and each Lonsdale Services ifa will consider each client’s circumstances on an individual basis.  Groups that our independent financial advisers may consider vulnerable include:

1)    The elderly (as a guide anyone over 75 years old)
2)    Anyone with sensory issues for example:  impaired vision or hearing
3)    Anyone with little or no understanding of English
4)    Those with learning difficulties or mental incapacity
5)    Anyone who has recently experienced major life changes such as bereavement or divorce
6)    Students or the unemployed
7)    Recently independent or self-employed individuals
8)    Anyone who has recently become responsible for an unusually large amount of money.  For example: trustees or beneficiaries of a trust

Daniel Stansall, independent financial adviser Barnet, North London said:

‘Our independent financial advisers are careful to identify vulnerable clients before offering independent financial advice.  Where our financial consultant feels that the client may be vulnerable they should ensure that a client is given the opportunity to have a trusted friend, relative or legal adviser present at the appointment to assist them.  This offer should be recorded on the client file and the presence of a third party recorded in the fact find. 

If the vulnerable person does not provide authority for having a third party presence, then no independent financial advice can be supplied without first discussing the case with Simon Hawker, Lonsdale Services Compliance Officer and member of the St Albans financial planning team.  In the cases where the independent financial advice process continues, these cases will be viewed as high risk and will be subject to a file review before any independent financial advice is issued.

If the customer is mentally incapacitated and not able to make decisions for themselves independent financial advice should only be given to an attorney or court appointed deputy, and a full copy of the registered enduring/lasting power of attorney or deputy order should be retained on file.  We always recommend our clients set up lasting power of attorney.  To find out how to set up lasting powers of attorney read my article – Daniel Stansall, IFA recommends setting up lasting power of attorney.’

Simon Hawker, Managing Director of Lonsdale Services and member of the St Albans financial planning team said:

‘We implement our Vulnerable Client Policy wherever necessary.  Clients should be reassured that we protect them by regularly checking the integrity of our financial planning teams. All our financial consultants and office administrators have an annual credit check undertaken by Equifax.  All Lonsdale Services independent financial advisers have an enhanced Criminal Record check conducted, which is repeated every two years; and our office administrators have a basic Criminal Record check.’

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