Ongoing impacts from the pandemic has resulted in many more people falling into the category of ‘vulnerable clients’, reveals ValidPath.
As the FCA rightly continues to prioritise protecting and safeguarding customers, the financial adviser network has come out in support of advisers, predicting they will need more and more support with identifying clients’ vulnerabilities, particularly as changes are made due to Consumer Duty regulation.
With these new Consumer Duty rules, Guaranteed Annuity Rates and how to handle vulnerable clients amongst the top queries raised by advisers this past quarter, it is clear now more than ever that advisers need guidance to navigate the ongoing economic turmoil.
Nicola Butterworth, financial advice & compliance director at ValidPath, said: “In a constantly changing regulatory landscape, it is no surprise that we have seen adviser queries increase in recent years.
“As the FCA looks to meet the challenges of a post-pandemic recovery, policies are naturally evolving, causing uncertainty amongst advisers, and resulting in increased demand for assistance.
“This is further exacerbated by customers who, in re-evaluating their finances and retirement plans amidst a cost-of-living crisis, are questioning their current portfolios and seeking new investment avenues from advisers.”
For many people, the pandemic has also accelerated retirement plans, with ValidPath also seeing an increase in advisers seeking input with the process surrounding clients moving overseas with UK pensions, and how best to continue to offer advice and support client needs within a compliant framework.
In relation to Guaranteed Annuity Rates, the expanded definition of what falls under this classification is causing more adviser interest around how to treat those under pension transfer legislation.
Philip Dragoumis, director at Thera Wealth Management, added: “In such a challenging economic climate, it is vital advisers give clients the support and information they need to make satisfactory financial decisions.
“As the FCA sets higher standards for Consumer Duty, it’s no surprise that advisers increasingly need the type of technical support provided by ValidPath to ensure compliance and good customer outcomes.”
Emma Smith, financial advice and compliance manager at ValidPath, said: “We are always available to assist with adviser queries.
“To ensure that we can provide the highest levels of support and technical expertise, ValidPath has made significant investment in both staff and technology to support the culture of collaboration and cooperation that exists within the network.”
